Azul confirms IPO with Super Preferred Shares
On February 6th, 2017, the airline Azul registered its preliminary prospectus to carry out an IPO. The operation involves the sale of preferred shares entitled to 75X the economic value of the company’s ordinary shares – representing a structure of super preferred shares similar to that adopted by Gol Linhas Aéreas.
The structure of super preferred shares have already been criticized by Amec in several occasions, such as in the Notice to the Market relative to Gol’s decision, in the statements about the reform of the Novo Mercado in 2015, 2016 and 2017, in the letters sent to the voting consulting firms ISS (here and here) and Glass Lewis (here and here) and to BM&F Bovespa, and in the President Letter 14/16.
Amec strongly supports the one share one vote structure, as in the letter sent to the Brazilian Institute of Corporate Governance – IBGC – in 2015. Most of the corporate governance problems analyzed by the association can be directly credited to the lack of balance between the political power and the capital commitment, what must be taken into account by investors when they take investment decisions.
