AIRASIA X plans to raise up to RM859.3 million (US$274.9 million) through an IPO exercise to fund its fleet expansion plans and repay bank loans.
The company is offering 790.1 million shares at an indicative price range of RM1.15-1.45 for institutional investors. The deal will be priced on June 24.
Proceeds from the IPO will be used to repay bank borrowings, purchase new aircraft and for working capital.
The airline also has plans to set up new hubs in Indonesia and Thailand. Its CEO, Azran Osman-Rani, said: “The initial process of getting licensing from the regulatory bodies are underway.”
AirAsia X is looking at creating hubs in Bangkok, Jakarta, Denpasar and Tokyo – cities with AirAsia hubs in order to capitalise on AirAsia’s massive feeder network to build a stronger brand and group presence in the Asia-Pacific region (TTG Asia e-Daily, February 22, 2013).
The longhaul arm of AirAsia will take delivery of seven new Airbus A330 aircraft and another seven aircraft next year, part of its scheme to increase its operating fleet size to 32 by 2016, through a mixed strategy of purchasing and leasing aircraft.
The new aircraft will be used to increase frequencies on current routes and introduce new ones.
Tony Fernandes, CEO, AirAsia Group, said AirAsia X would also resume flights to India but declined to reveal whether the airline would recommence services to Delhi and Mumbai.
AirAsia X’s services from Kuala Lumpur to Mumbai and New Delhi were suspended on January 31, 2012 and March 22, 2012 respectively.
