Brazil’s Embraer shares soar 16% on the stock exchange with the announcement of Eve’s listing in the U.S.

RIO DE JANEIRO, BRAZIL – Shares of Embraer on Tuesday, December 21, up to 16.27%, as investors react to the news that the subsidiary Eve will be listed on the New York Stock Exchange (NYSE). The transaction values the electric aircraft manufacturer at US$2.9 billion.

The transaction is positive for Embraer shareholders, since the Brazilian company will continue to control Eve with an 82% stake (direct and indirect) in the company.

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According to Bradesco BBI analysts, the transaction could increase the value of the company’s shares to R$18.70, which represents an upside potential of 87% compared to the previous day’s closing price.

It is worth remembering that Embraer is one of the stocks that rose the most in 2021, accumulating a high of over 130%.

A large part of the gains came precisely from the company’s entry into the “flying car” market. The eVolts, electric aircraft for vertical take-off and landing, are Eve’s main focus.

Eve is expected to hit the US stock market after merging with US SPAC Zanite, which is listed on the NYSE. Quite common in the American market, SPACs are “blank check” companies, which raise money from investors to acquire a second company.

The transaction included in a first step a merger with Zanite, which gives up its place to Eve on the exchange. After that, Eve will receive additional investment from a group that includes Embraer, Zanite, financial investors and strategic partners such as Azorra Aviation, BAE Systems, Republic Airways, Rolls-Royce and SkyWest Melbourne.

At the end of the transaction, Eve will have a cash position of US$512 million, which will be used to develop its electric air cab business.