AirAsia X IPO lined up for June

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air-asia-x-jeddahAirAsia X, the long-haul subsidiary of AirAsia Berhad, has readied its highly anticipated listing on Bursa Malaysia for June, AirAsia Group CEO Tony Fernandes said on March 19.

The proposed IPO is due to raise an expected $250 million, of which half would be utilised to repay bank borrowings and 21.5 per cent for capital expenditure.

It will also be used for expanding the carrier’s network. AirAsia X  has sought Thai authorities’ approval for an air operator’s certificate to operate regular flights from Bangkok to South Korea and Japan, highly competitive routes with strong demand and growth potential.

The airline also said it plans to restart flying to India “in the next one to three years” after withdrawing services to Delhi and Mumbai in February 2012, citing high fuel prices.

Currently, Air Asia X flies from Kuala Lumpur to destinations in Japan, South Korea, Taiwan, Australia, China and also offers haj flights to Jeddah in Saudi Arabia.

Fernandes told Bernama that when submitting AirAsia X’s application and prospectus to the Securities Commission (SC) he was confident it would be approved, referring to an initial aborted plan to previously list the company.

Fernandes said that he envisions this listing to be different, saying that he would like to give Malaysians who have frequently flown on AirAsia X priority for shareholder ownership.

“Thus, I want AirAsia X to be a public issue. For this, I am going to go on a road show to promote the AirAsia X’s shares throughout Malaysia, and to increase the level of Malaysians’ participation in a Malaysian company,” he said.

AirAsia X owns a fleet of nine Airbus A330-300s for scheduled services and has two A340-300s for wet-lease and charter operations flying to 12 destinations across Asia and the Middle East.

The company appointed CIMB Investment Bank Bhd as its principal advisor for the IPO while Maybank Investment Bank Bhd, CIMB and Credit Suisse are the joint global coordinators.

 

 

 

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AirAsia X, the long-haul subsidiary of AirAsia Berhad, has readied its highly anticipated listing on Bursa Malaysia for June, AirAsia Group CEO Tony Fernandes said on March 19. The proposed IPO is due to raise an expected $250 million, of which half would be utilised to repay bank borrowings and 21.5 per cent for capital expenditure. It will also be used for expanding the carrier's network. AirAsia X  has sought Thai authorities' approval for an air operator's certificate to operate regular flights from Bangkok to South Korea and Japan, highly competitive routes with strong demand and growth potential. The airline...

Reading Time: 2 minutes

air-asia-x-jeddahAirAsia X, the long-haul subsidiary of AirAsia Berhad, has readied its highly anticipated listing on Bursa Malaysia for June, AirAsia Group CEO Tony Fernandes said on March 19.

The proposed IPO is due to raise an expected $250 million, of which half would be utilised to repay bank borrowings and 21.5 per cent for capital expenditure.

It will also be used for expanding the carrier’s network. AirAsia X  has sought Thai authorities’ approval for an air operator’s certificate to operate regular flights from Bangkok to South Korea and Japan, highly competitive routes with strong demand and growth potential.

The airline also said it plans to restart flying to India “in the next one to three years” after withdrawing services to Delhi and Mumbai in February 2012, citing high fuel prices.

Currently, Air Asia X flies from Kuala Lumpur to destinations in Japan, South Korea, Taiwan, Australia, China and also offers haj flights to Jeddah in Saudi Arabia.

Fernandes told Bernama that when submitting AirAsia X’s application and prospectus to the Securities Commission (SC) he was confident it would be approved, referring to an initial aborted plan to previously list the company.

Fernandes said that he envisions this listing to be different, saying that he would like to give Malaysians who have frequently flown on AirAsia X priority for shareholder ownership.

“Thus, I want AirAsia X to be a public issue. For this, I am going to go on a road show to promote the AirAsia X’s shares throughout Malaysia, and to increase the level of Malaysians’ participation in a Malaysian company,” he said.

AirAsia X owns a fleet of nine Airbus A330-300s for scheduled services and has two A340-300s for wet-lease and charter operations flying to 12 destinations across Asia and the Middle East.

The company appointed CIMB Investment Bank Bhd as its principal advisor for the IPO while Maybank Investment Bank Bhd, CIMB and Credit Suisse are the joint global coordinators.

 

 

 

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