IPO Overview
Brazilian airline, Azul (Pending:AZUL) is expected to price Thursday evening (4.6) and go public on Friday (4.7). The company expected to raise $478M through the offer of its 72 million shares at a price range of $18.02 to $21.81. Of the 72 million shares being offering, 9 million are from certain selling shareholders, representing 13% of the total offering. Azul Inc. will dual list on the NYSE and on the Sao Paulo Stock Exchange in Brazil. Each ADS represents three preferred shares.
Azul had previously attempted to IPO in 2013, 1014, 2015, but postponed for various reasons. The company appears more prepared now, and recently raised new capital by selling 5% of the company to United Continental Holdings Inc.
Assuming Azul prices at the mid-point of the price range, it would command a market cap value of $2.19B and trade at a price/sales ratio of 1.07x.
Underwriters include: Citi, Itau BBA, Deutsche Bank, Banco do Brasil Securities LLC, Bradesco BBI, J.P. Morgan, Raymond James, Santander, and Banco Safra SA.
Business Summary –
$2.19B, is the largest Brazilian airline in terms of both departures and cities served. The airline operates an extensive domestic network and flies to three international destinations: Fort Lauderdale, Orlando, and Lisbon. The airline has 784 daily departures serving 101 destinations and is the only airline on 70% of its routes.
Azul operates as a low-cost carrier and was founded in 2008 by David Neeleman, founder of JetBlue. The company operates a loyalty program, TudoAzul, which has 7M members.
(Company Website)
Management Team
David Neeleman founded Azul Inc., and serves as CEO and Chairman of the board. He is a dual Brazilian and US citizen and previously founded the JetBlue airline, where he served as CEO. Neeleman has a long history of working in the airline industry beginning in 1984. He previously co-founded Morris Air and implemented the industry’s first electronic ticketing system. The company was later sold to Open Skies. He also co-founded WestJet Airlines.
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