Brazil's Azul launches share offering to raise $1.33 billion

SAO PAULO, Dec 22 (Reuters) - Brazilian airline Azul AZUL4.SA on Monday launched a primary share offering to raise some 7.44 billion reais ($1.33 billion) to settle financial debts.

Azul is offering about 724 billion preferential shares and an equal amount of ordinary shares, the filing showed.

Azul had filed for Chapter 11 bankruptcy in New York in May, aiming to cut its debt and make its business more resilient to market challenges like fluctuations in fuel prices and currency exchange rates.

Earlier this month, a U.S. bankruptcy judge approved the firm's debt restructuring, allowing the Brazilian airline to slash more than $2 billion in debt and raise capital through a new equity rights offering and investment from American Airlines AAL.O and United Airlines UAL.O.

Azul is offering the preferential shares in allotments of 10,000, with each allotment priced at 101.45 reais, while the ordinary shares are being sold in groups of one million for 135.27 reais per group.

Investment bank UBS BB is the bookrunner of the share offering, whose conclusion is set to be ratified by Azul's board on January 6.

Azul is also giving subscription bonuses, which later can be converted into new shares, to investors who participate in the offering.

($1 = 5.5910 reais)