LARGE EXPANSION: (From left) Non-independent non-executive director Lim Kian Onn, independent non-executive director Datuk Yusli Mohamed Yusoff, Nazir, deputy group CEO of AirAsia, co-founder and director AirAsia X Datuk Kamarudin Meranun, Rafidah, CEO of AirAsia X Azran Osman-Rani, Fernandes, independent non-executive director Tan Sri Asmat Kamaludin, non-independent non-executive director Datuk Seri Kalimullah Masheerul Hassan and non-independent non-executive director Datuk Fam Lee Ee at the launch of AirAsia X Prospectus.
KUCHING: AirAsia X Bhd (AirAsia X), Malaysia’s leading low cost, long haul air carrier, launched its prospectus yesterday for its initial public offering (IPO) pursuant to the company’s listing on the Main Market of Bursa Malaysia next month.
In a press statement yesterday, the company elaborated that the IPO exercise would consist of up to 790,123,500 ordinary shares of 15 sen each in AirAsia X.
This involves an offer for sale of up to 197,530,900 existing shares (offer shares) and a public issue of 592,592,600 new shares (issue shares), comprising an institutional offering of up to 538,011,800 shares and a retail offering of 252,111,700 shares.
The retail offering comprises 52,111,700 issue shares for eligible persons, 50 million issue shares for eligible passengers and 150 million issue shares for the Malaysian public at the initial retail price of RM1.45 per issue share.
Speaking at the official launch, AirAsia X independent non-executive chairman Tan Sri Rafidah Aziz said, “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 travelers.
“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.”
Meanwhile, the long haul carrier’s co-founder and director Tan Sri Tony Fernandes highlighted that AirAsia X’s unique proposition laid in its competitive fares and early mover advantage.
“We have the largest low cost carrier wide-body aircraft seat capacity in the Asia Pacific region. Complete with our extensive route network and passenger base, we have one of the lowest unit cost base of any airline in the world.
“We are able to offer fares that are targeted to be on average 30 to 50 per cent lower than full service carriers, thus stimulating new market demand and growing passenger volumes between Kuala Lumpur and other destinations that we serve.”
The gross proceeds from the public issue of up to RM859.3 million (based on the assumed institutional price and the retail price of RM1.45 per share) are expected to be utilised in the repayment of bank borrowings (33.3 per cent), capital expenditure (32.6 per cent) and general working capital (29.7 per cent) while general listing expenses would make up 4.4 per cent. The period of retail offering would end at 5pm on June 19 while the institutional offering would close on June 24. Listing of AirAsia X on Bursa Malaysia is tentatively on July 10.
Incorporated in 2006, AirAsia X commenced low-cost, long-haul air transportation services in November 2007 and currently operates a fleet of ten A330-300s for scheduled services as well as having accepted delivery of an additional A330-300, scheduled to commence operation in July.
Also present at the launch ceremony was CIMB Group’s group chief executive Datuk Seri Nazir Tun Razak who said, “AirAsia X’s IPO on Bursa Securities is set to be the largest IPO in Malaysia to date for 2013. This represents the fourth IPO of a Tune Group affiliated company.
“Tune Group has an outstanding track record of delivering value to its investors. We hope that AirAsia X will continue in the same vein and expect its listing to add depth and liquidity to Bursa Malaysia’s airline sector.
“We also anticipate that AirAsia X will attract a significant investor following given its uniqueness and high growth prospects,” he said.
CIMB Investment Bank Bhd is the principal adviser for the exercise, and joint global coordinator together with Credit Suisse (Singapore) Ltd and Maybank Investment Bank Bhd.