Azul, the Brazilian airline, was greeted with strong investor demand when it flew on to stock markets in Brazil and the US on Tuesday.
The group’s preferred shares jumped almost 7 per cent in Brazilian trading to R$22.45, from the offer price of R$21.
Azul’s IPO comes as the latest sign that the equities capital markets in South America’s biggest economy are beginning to heat up. Movida Participacoes and Instituto Hermes Pardini both floated their shares earlier this year.
Brazil’s third-biggest airline by volume has had a long road to its own market debut, with the offering delayed earlier in April by regulators over questions about its roadshow materials. It had planned to hit public markets in recent years as well, but had been thwarted by choppy market conditions.
Azul’s American depository shares zipped higher to $21.50 in mid-day trading in New York, after pricing at $20.06 each.
The group which was founded by former JetBlue chief executive David Neeleman said it sold 85.4m shares, with underwriters given the option to buy an extra 10.8m shares. Assuming the so-called greenshoe option is enacted, the offering would be valued at R$2.02bn ($645m).