Why Embraer Stock Exploded 17% Higher Today

Shares of Embraer S.A. (NYSE: ERJ) were up by 17% as of 11:30 a.m. ET Tuesday after the Brazilian planemaker announced plans to spin off its Eve urban air mobility solutions (i.e., "air taxis") subsidiary in an IPO.

Specifically, it will use a SPAC IPO. Embraer will merge Eve with special purpose acquisition company Zanite Acquisition Corp. (NASDAQ: ZNTE) and rake in the profits for itself.

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Source Fool.com