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Brazil's Gol goes public

Brazil's low-cost carrier Gol Transportes Aereos is expected to raise as much as $275 million in an initial public offering (IPO). Its shares will be offered first on the New York Stock Exchange, followed soon after with a domestic float in Sao Paulo. The lead managers for the IPO are Morgan Stanley, Santander and Unibanco.

Launched in January 2001, Gol has grown quickly to become Brazil's third largest airline. Brazilian conglomerate Grupo Aurea is likely to retain its 80% stake as the result of a new share issue allocated to it shortly before the IPO.

American International Group, parent of US lessor International Lease Finance (ILFC), has held a 20% stake since last year. The IPO is entirely a new issue.

Gol has been profitable for the past two years, earning 113 million reals ($39 million) last year on 526 million reals in revenue, and almost equalled that amount in the first quarter of this year, based on unaudited results. Its domestic market share has grown quickly and now tops 22%.

 

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