SAO PAULO, April 24 (Reuters) - ** Shares in Brazilian airline Azul AZUL4.SA sank nearly 25% on Thursday as the company raised 1.66 billion reais ($291.7 million) in a share offer that had the potential to reach as much as 4.11 billion reais

** Azul shares ended the session at 2.36 reais ($0.42) each, near the 2.35 reais they had reached in the lowest point of the day, which is also the stock record low, taking its market value down to 1 billion reais versus 1.4 billion at the previous close

** "Despite the importance of the announcement as the final part of the debt renegotiation, the result fell short of expectations, especially in the inflow of new capital," analysts at Genial Investimentos said

** "This raises doubts about the execution of the final stage of the restructuring," they added

** Bloomberg reported, citing sources, that an investment bank has approached Azul creditors to drum up fresh capital

** With the decline, shares in Azul led losses in the session among stocks within Brazil's equities benchmark index Bovespa .BVSP, which ended up 1.8%

** The share drop also comes after Brazil antitrust watchdog Cade said it had decided to analyze Azul's codeshare agreement with rival Gol GOLL4.SA

($1 = 5.6901 reais)

(Reporting by Andre Romani; Editing by Sarah Morland)

((Andre.Romani@thomsonreuters.com; 11 991314109;11 56447500;))