Azul takes capital raise private

Brazilian airline Azul, which began work on an IPO last year, has agreed a private capital raise with existing shareholders, a move that may be followed by others. Azul’s shareholders have agreed to subscribe BRL240m of newly-created class B preference shares, according to minutes of a shareholders meeting published on Tuesday. The notes will automatically convert to ordinary shares ahead of an IPO by Azul. Such private capital raises are likely to be increasingly common as markets face continued volatility, said one ECM banker. “In this market, why not — and its shows the controlling shareholders have confidence in the company,” the banker said on Tuesday. Azul filed for an IPO in May last year, to raise cash for expansion and debt repayment, but cancelled the plan in August after Brazil’s stock market tumbled in the intervening months. The Ibovespa has recuperated from the 45,044-point low it reached in early July, but at 47,840 points on Tuesday it was still 20.8% lower than where it traded a year ago.