Smiles SA, a Brazil Frequent-Flier Program, Raises BRL1.13 Billion in IPO

    RIO DE JANEIRO--Smiles SA, the frequent-flier program of Brazilian airline Gol Linhas Aereas Inteligentes SA, said Thursday it raised 1.13 billion reais ($564.7 million) from an initial public offering.

    Smiles sold 52.17 million shares priced at BRL21.70 apiece. The shares will trade in Brazil under the ticker symbol SMLE3.BR.

    The IPO, proceeds of which will likely be used to reduce Gol's debts, came near the bottom of company estimates for a price of between BRL20.70 and BRL25.80. It comes at a time when Gol is struggling to recover profitability after posting a BRL1.5 billion net loss in 2012.

    Gol shares in Sao Paulo closed 4.7% higher Thursday at BRL13.81.

    Write to Paul Kiernan at