* Azul plans double listing in Brazil, United States
* To use proceeds to purchase new planes, add routes
SAO PAULO May 27 Azul Linhas Aéreas Brasileiras
SA, Brazil's third-biggest airline, plans to list its stock in
Brazil and in the United States to bolster expansion in what
might be the first initial public offering for a local airline
The company will sell stock in a so-called primary offering,
by which Azul will raise funds for corporate purposes, with
shareholders partially exiting their stake in the company
through a so-called secondary offering, the company said in a
securities filing on Monday. The IPO includes the sale of
U.S.-traded shares in the form of American Depositary receipts.
The total size of the transaction could reach about 1
billion reais ($487.8 million), according to IFR, a Thomson
Reuters service specialized in the coverage of capital markets.
Spokespeople at the Barueri, Brazil-based company were unable to
confirm terms of the offering, citing a quiet period imposed by
Brazil's securities regulator.
Funds from the IPO will be used to purchase new planes, add
routes and reinforce working capital, the filing added. The
company will also use part of the proceeds to pay off some loans
and make lease payments on five aircraft.
Azul's fleet, which numbered 55 planes as of last year, is
largely composed of E190 and E195 jets made by Brazil's Embraer
Azul, founded by Brazilian-born entrepreneur David Neeleman,
competes against LATAM Airlines Group and Gol Linhas
Aereas Inteligentes SA by offering low fares and
direct routes between under served cities. It is the fourth
low-cost airline launched by Neeleman, who is best known for
founding U.S. carrier JetBlue Airways Corp.
In the year through May, companies in Brazil raised 14.9
billion reais through IPOs. Stung by a string of deals that
failed to deliver on promised returns, investors have been
cautious with share offerings in the country. In 2012, Brazil's
IPO activity was the slowest in seven years.
Among Azul partners are Gávea Investimentos, the Rio de
Janeiro-based asset management company controlled by JPMorgan
Chase & Co. and U.S. private equity firm TPG.
Azul hired the investment banking units of Banco Santander
Brasil, Banco do Brasil SA, Itaú Unibanco
Holding SA and Morgan Stanley & Co to handle