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Azul S.A. (B3:AZUL4; NYSE:AZUL), the Brazilian airline, has successfully concluded a capital increase through a primary public offering of preferred shares, raising R$ 1.66 billion (approximately $1.66 billion). The offering included 464.1 million new shares, priced at an amount that brings the company’s total capital to R$ 7.13 billion. This development was ratified by the Board of Directors on Wednesday. The capital raise comes at a crucial time for the airline, which currently has a market capitalization of $191.5 million and faces challenging financial metrics according to InvestingPro data, including a current ratio of 0.27.Want deeper insights? InvestingPro subscribers have access to 11 additional key insights about Azul’s financial health and market position.
The offering also introduced warrants, with one warrant issued for each share purchased. However, 450.6 million of the warrants were voluntarily cancelled. The remaining warrants and additional shares, which represent a 3% increase over the initially offered shares, will begin trading on the B3 exchange on April 25, 2025.
This capital raise comes after a series of announcements dating back to October 7, 2024, outlining the progress of the offering. Azul’s existing shareholders were given the opportunity to participate in a priority offering, though they did not have preemptive rights for the new shares.
The financial settlement of the shares will occur on April 28, 2025, with the warrants being credited to subscribers’ accounts the following day. The offering was not registered under the U.S. Securities Act of 1933 and was unavailable to holders of American Depositary Receipts or U.S. persons.
Azul assures shareholders and the market that they will continue to provide updates on the offering through regular communication channels. This press release is for informational purposes and does not constitute an investment recommendation or an offer to purchase securities.
In other recent news, Azul S.A. has announced a significant capital increase as part of its financial restructuring efforts. The company’s Board of Directors has approved a capital boost ranging from BRL 1.51 billion to BRL 6.13 billion through the private issuance of new preferred shares. This move is aimed at enhancing Azul’s financial health and liquidity, and follows negotiations with lessors and equipment suppliers expected to improve cash flow by over USD 300 million between 2025 and 2027. Additionally, Azul has declared a substantial capital increase to raise between BRL 72 million and BRL 3.37 billion, subject to shareholder approval. This capital hike includes the issuance of up to 2 billion common shares and 722.3 million new preferred shares. In another development, Azul has filed for a primary public offering of up to 450,572,669 preferred shares, which may be increased by an additional 155%. The offering, targeted at professional investors, includes international placement efforts. Azul has also announced a closing date for its lessors’ equity issuance, finalizing on April 3, 2025, involving the subscription of 96,009,988 preferred shares to eliminate equity issuance obligations worth approximately $525 million. The company remains committed to keeping shareholders informed of these developments.
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