AirAsia to sell 480 million new shares
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Malaysian low-cost carrier, AirAsia Bhd, plans to sell up to 481 million new shares in a private placement, the company has said in a statement to the Kuala Lumpur stock exchange. The Business Times reported that proceeds of the sale will be used to repay part of AirAsia’s borrowings. The new shares represent as much as 20% of the company’s total equity.AirAsia has ordered 175 planes from Airbus, making the carrier the biggest customer for the planemaker’s single-aisle aircraft in Asia. The Sepang-based airline is expanding its fleet to add more routes to China and India. The airline had a debt-to-equity ratio of 4.17, based on MYR1.605 billion (US$458 million) of equity and MYR6.691 billion of total debt, according to data compiled by Bloomberg and AirAsia’s most recent annual report.
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