(Updates with closing prices in second paragraph.)
Feb. 28 (Bloomberg) -- Gol Linhas Aereas Inteligentes SA, Brazil’s second-biggest air carrier by market share, rose as its frequent-flier unit moved closer to an initial public offering.
Shares gained 3.6 percent to 12.57 reais at the close of trading in Sao Paulo, the highest price since Feb. 22. The Bovespa index rose 0.3 percent.
The Sao Paulo-based airline said in a regulatory filing after the market closed yesterday that its mileage unit, known as Smiles SA, filed a request with regulators to issue shares. The company didn’t give any more details on the offer.
“The IPO is very positive for both Gol and Smiles,” Felipe Silveira, an analyst at brokerage Coinvalores in Sao Paulo, said in a telephone interview today. “For Gol, it unlocks the value of an asset that was a little forgotten.”
The filing marks another step in an IPO process that started last year when Gol said Smiles would become an independent unit, Silveira said.
Gol has dropped 16 percent from this year’s high on Jan. 29 while the Bovespa slipped 4.9 percent.
--Editors: Brendan Walsh, Richard Richtmyer