Mario Fonseca/RIO DE JANEIRO
Brazilian regional aircraft manufacturer Embraer has listed on the New York Stock Exchange (NYSE), raising $390 million on the first day of trading in 18.9 million American Depository Shares (ADS). Each ADS is worth four non-voting preferred shares traded on the Sao Paulo Stock Exchange.
The offering was moderately successful, with shares offered at $20 each, improving to $21.56 by the end of the day, and in line with Embraer's expectation.
Around 8.4 million preferred shares were also placed on the Sao Paulo Stock Exchange, but did not enjoy the same success. The sale of a further 84 million preferred shares over coming weeks will net around $480 million, and is earmarked for investment in ERJ-170/-190 research and development costs, among other projects.
World Trade Organisation arbitrators have meanwhile put back until next month a decision on how much Canada can claim in trade sanctions against Brazil in the row over subsidies paid to Embraer via the Proex programme. The WTO earlier upheld its ruling against the aid, which had followed a complaint from Canada, home to Embraer's arch-rival Bombardier.
In May, Canada said it would seek permission to take countermeasures totalling several hundred million dollars against Brazil, but both parties are still trying to settle the matter through discussions.
Brasilia has indicated that it will drop Proex for future deals, but will not backdate the move. It may compensate Canada for the difference.
Source: Flight International
