AirAsia X plans to raise US$271m in IPO
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AirAsia X has launched an initial public offering (IPO) through which it plans to raise up to MYR859.3 million (US$271m).
The Malaysian long-haul low-cost carrier today launched its prospectus, ahead of a planned listing on the Malaysian stock exchange in July 2013.
The airline plans to sell up to 790,123,500 ordinary shares for MYR0.15 each, comprising 197,530,900 existing shares and 592,592,600 new shares. There is also a retail offering of 252,111,700 shares priced at MYR1.45 each.
Speaking at the launch of the prospectus, AirAsia X’s independent non-executive chairman, Rafidah Aziz, said the airline plans to use to proceeds of the IPO to fund its expansion.
“The listing of AirAsia X would enable easier access to funding from the capital market and propel the company’s expansion plans and growth strategies. We have always been at the forefront of providing an affordable avenue for price-sensitive travellers. Apart from leveraging on the strong brand of the AirAsia Group, this exercise will enable us to enhance our stature in the aviation industry and expand our market position in the Asia Pacific Region,” Aziz said.
In addition to funding its expansion, AirAsia X revealed that 33% of the funds would be used to repay bank loans.
The airline now serves 14 destinations across Asia, Australia and the Middle East using a fleet of 10 Airbus A330-300s.
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