News

AirAsia Group Completes Private Placement of 100.37 Million New Shares

KUALA LUMPUR, March 17 —  AirAsia Group Bhd. has completed its private share placement exercise for  the second tranche which  comprises  100.37 million new shares or about three per cent of the company’s issued shares.

Chief executive officer Tan Sri Tony Fernandes said the successful private share placement and the positive  response that it received from local and foreign investors were a testament to AirAsia’s strong fundamentals and its tremendous future potential, especially with its pivot into digital and data-driven businesses.

“This placement forms a significant part of the group overall fundraising exercise to ensure liquidity throughout 2021.

“Of the gross total proceeds, AirAsia will allocate funds to support fuel hedging settlement, general working expenses, aircraft lease and maintenance payments and fund Airasia Digital business units, namely the Airasia Super app and BigPay fintech platforms,” he said in a statement today.

The second tranche, issued at 86.5 sen per share, follows  the initial tranche of 11.07 per cent  or 369.85 million shares issued on Feb  19  that saw the emergence of Hong Kong-based investor Dr Stanley Choi Chiu Fai as a  substantial shareholder after upgrading his share position to 8.96 per cent  from less than five per cent previously.

In total, both tranches delivered 470.21 million new shares issued under the private placement exercise, representing 14.07 per cent  of AirAsia Group’s total issued shares and raised a total of RM336.46 million.

Earlier, the shareholders of AirAsia Group and Bursa Malaysia Securities Bhd had approved for AirAsia Group to undertake the private placement exercise of up to 20 per cent of its total issued shares.

The exercise forms part of AirAsia Group’s larger plans to raise up to RM2.0 billion – RM2.5 billion via a combination of debt and equity to finance, among others, the working capital requirements of the group.

On a wider scale, Fernandes said the private placement was a major vote of confidence towards the recovery of the aviation and tourism industry that had been severely hit by the COVID-19 pandemic.

“At AirAsia, we have robust plans that will allow us to survive on domestic services until international borders reopen,” he said.

He  also expressed confidence  that the rollout of vaccination programmes in the key markets, which are  set to immunise 40 to 50 per cent  of the populations by the third quarter of this year, as well as other factors would pave the way for a major travel reboot in the near future.

The other factors include better education and testing, strong support for leisure travel bubbles among low risk countries and territories, and  the push for global digital health passports.

Source: BERNAMA

Adib Mohd

Recent Posts

Your September–October Watchlist: Food, Drama & Frights

Mark your calendars, TV junkies. September & October are serving drama, food wars, and spooky… Read More

17 hours ago

Pandora Talisman Drops, Ancient Coin Energy Meets Modern Vibes

Pandora is flipping the script this autumn with the launch of Pandora Talisman, a jewellery… Read More

19 hours ago

LADA Unveils ‘Langkawi Special Deals’ with MAG Partnership to Supercharge Island Tourism

The Langkawi Development Authority (LADA) has launched “Langkawi Special Deals”, a strategic tourism campaign featuring… Read More

19 hours ago

Maxim Rolls Out Partner-Driver Legalization Program to Elevate Compliance and Road Safety

Maxim, one of Malaysia’s leading e-hailing platforms, has officially introduced a Partner-Driver Legalization Program designed… Read More

21 hours ago

Sabah Crowned Malaysia’s Favourite Destination, A Paradise of Peaks, Seas, and Culture Awaits!

Sabah, located in the north-eastern part of Borneo, has officially earned the title of Malaysia’s… Read More

21 hours ago

Coca‑Cola Brings Back ‘Share a Coke’ Now With a Proudly Malaysian Twist

This Merdeka, Coca‑Cola is turning up the nostalgia and the local flavour. The iconic ‘Share… Read More

2 days ago

This website uses cookies.