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Monday, April 8, 2013

Brazil Gol seeks to raise $681 million in Smiles unit IPO, (NYSE: GOL)

Gol Linhas A�reas Inteligentes SA plans to raise up to 1.35 billion reais ($681 million) in the initial public offering of its Smiles SA customer loyalty unit, Brazil's No. 2 airline said on Monday in a regulatory announcement in an effort to buttress the company as it faces several challenges.The pricing is scheduled to take place on April 25, Gol said.The Smiles IPO could help prop up Gol, which for the past year has struggled with a surge in operating costs, rising debt and an economic slowdown that temporarily weighed down demand for air travel. In recent months, Gol's fortunes have improved after the Brazilian currency gained ground against the dollar, helping tame costs, and economic growth began to gather steam.The airline plans to sell at least 30.6 million common shares at between 20.70 reais and 25.80 reais each. An additional 13.5 million shares could be offered as part of the transaction, the bank added.

Gol Linhas Aereas Inteligentes SA (Gol) is a Brazil-based holding company primarily engaged in the passenger air transportation sector. Shares of GOL remained unchanged at $5.32. In the past year, the shares have traded as low as $3.77 and as high as $7.67. On average, 2163200 shares of GOL exchange hands on a given day and today's volume is recorded at 112800.



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