GOL expects to raise USD347 million from share issue; Vueling benefits from Clickair merger
GOL’s shares were up 2.6% on Friday, as the carrier announced that its global offering of shares (including preferred shares in the form of American depositary shares) has been priced at USD9.48/ADS and BRL16.50 (USD9.47)/preferred share.
Upon pricing, the transaction was upsized by 10% from 34.6 million to 38.0 million preferred shares. The company intends to use the net proceeds of approximately USD347 million primarily for general corporate purposes and to strengthen its cash position and balance sheet.
Also in the Americas, Southwest’s shares slipped 1.4% on Friday.
Vueling benefits from Clickair merger
In Europe, Vueling's shares gained 1.0% on Friday, as the carrier posted a 91% jump in passenger traffic in Sep-2009 (to 956,000), due to its merger with Iberia’s low-cost subsidiary, Clickair, in Jul-2009. Vueling's load factor was up 6.6 ppts to 77%.
The carrier stated increased frequency on key routes, including Madrid-Barcelona (to ten times daily, with a further increase in frequency to 12 times daily from this month) has also enabled the carrier to better attract higher-yielding business passengers.
Selected LCCs daily share price movements (% change): 11-Oct-09