Saudi Arabia's sovereign wealth fund is set to invest USD 100 million in Malaysia's Capital A-owned budget airline AirAsia. As informed by a news report in Bloomberg News.
The Middle East investment forms the majority of AirAsia's about 1 billion ringgit ($225.99 million) fundraising target, with the firm also in discussions with potential investors from Singapore and Japan, the media report added.
The report, citing a person familiar with the matter, said the Malaysian airline is raising funds and offering investors up to a 15% stake at a $2 billion valuation, as it looks to target growth after pandemic-induced losses.
The parent firm expects to record a profit this year after a loss in 2024 when it recorded a one-off charge in its aviation business. Capital A is also offloading the budget carrier to long-haul unit AirAsia X Bhd to consolidate the operations under a single AirAsia brand.
