SAO PAULO, June 24 (Reuters) - Shares of Brazil's CVC
tumbled 8% on Friday after the travel operator said
its 403 million reais ($77 million) share offering was priced at
a sharp discount to closing prices.
The company said its offering was priced at 7.70 reais per
share, a 13.3% discount to Thursday's closing price of 8.88
reais per share.
In Friday morning trading, CVC shares plunged 8% to 8.18
reais, making it the top loser on Brazil's Bovespa stock index
, which was up overall 0.4%.
The firm, formally known as CVC Brasil Operadora e Agencia
de Viagens SA, announced the plan for an additional share
offering earlier this month, citing a gradual recovery in the
tourism industry, fueled by rising demand for both leisure and
The initial offering of 46.5 million common shares in CVC
was increased by 12.5% as demand allowed, the company said in a
CVC will use the amount raised to reinforce its working
capital and pay debenture holders, it said.
Citi and Bank of America managed the transaction.
($1 = 5.2388 reais)
(Reporting by Gabriel Araujo; Editing by Jason Neely, Jane
Merriman and Deepa Babington)