Maybank saved AirAsia X from IPO slump

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airasiaxThe lackluster IPO of AirAsia’s long-haul arm AirAsia X on July 10 could have been worse if Malaysia’s banking giant Maybank would not have helped the firm to stay afloat with its share price.

The airline saw moderate intraday gains at its debut at the Bursa Malaysia. The stock, initially offered at 1.25 ringgit per share, climbed to 1.28 ringgit during the first day session but then settled again at 1.25 ringgit. On July 12, the last trading day of last week, it ended the session at just 1,26 ringgit.

According to local media reports, even this poor performance had to be supported. Maybank Investment Bank is said to have helped prop up AirAsia X’s shares by pumping in more than 20 million ringgit ($6.5 million) to defend the shares from falling further and saving the carrier from becoming the worst debutant IPO on the local stock exchange over the past 12 months.

Prior to the share sale, AirAsia X had hired Maybank Investment Bank, a unit of the country’s top lender Maybank, to act as market stabiliser, allowing it to buy as much as 118.5 million shares in AirAsia X within 30 days of trading.

According to Bursa Malaysia’s statistics, Maybank Investment Bank bought 19.5 million AirAsia X shares at an average price of 1.25 ringgit a share. Traders had warned that there were waves of sellers, especially pre-IPO shareholders, whose ownership cost was below 1.25 ringgit a share and who locked in profits as they feared a broader retail market sell-off.

Altogether, AirAsia X made $310 million from the IPO which it said will be used for clearing debt and expand its network.

 

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Reading Time: 2 minutes

The lackluster IPO of AirAsia’s long-haul arm AirAsia X on July 10 could have been worse if Malaysia’s banking giant Maybank would not have helped the firm to stay afloat with its share price.

Reading Time: 2 minutes

airasiaxThe lackluster IPO of AirAsia’s long-haul arm AirAsia X on July 10 could have been worse if Malaysia’s banking giant Maybank would not have helped the firm to stay afloat with its share price.

The airline saw moderate intraday gains at its debut at the Bursa Malaysia. The stock, initially offered at 1.25 ringgit per share, climbed to 1.28 ringgit during the first day session but then settled again at 1.25 ringgit. On July 12, the last trading day of last week, it ended the session at just 1,26 ringgit.

According to local media reports, even this poor performance had to be supported. Maybank Investment Bank is said to have helped prop up AirAsia X’s shares by pumping in more than 20 million ringgit ($6.5 million) to defend the shares from falling further and saving the carrier from becoming the worst debutant IPO on the local stock exchange over the past 12 months.

Prior to the share sale, AirAsia X had hired Maybank Investment Bank, a unit of the country’s top lender Maybank, to act as market stabiliser, allowing it to buy as much as 118.5 million shares in AirAsia X within 30 days of trading.

According to Bursa Malaysia’s statistics, Maybank Investment Bank bought 19.5 million AirAsia X shares at an average price of 1.25 ringgit a share. Traders had warned that there were waves of sellers, especially pre-IPO shareholders, whose ownership cost was below 1.25 ringgit a share and who locked in profits as they feared a broader retail market sell-off.

Altogether, AirAsia X made $310 million from the IPO which it said will be used for clearing debt and expand its network.

 

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