AirAsia X plans fleet, route expansion with $418m IPO
Malaysian long-haul carrier AirAsia X said on Monday that it plans to use funds up to $418 million from a public listing to more than triple its Airbus fleet and expand routes to meet demand in Asia-Pacific.
The budget carrier founded by aviation tycoon Tony Fernandes hopes to raise the proceeds in an initial public offering (IPO) ahead of its 10 July debut on the Malaysian bourse.
'The estimated amount based on the 1.45 ringgit ($0.47) per issue share is between 1.1 billion ringgit and 1.3 billion ringgit,' Nazir Razak, head of banking group CIMB which is running the IPO, told reporters after the prospectus launch.
AirAsia X had earlier cited a conservative amount saying the IPO could raise RM859 million ($277 million) from the sale of 592.6 million new shares for between 1.15 to 1.45 ringgit each. AirAsia X chief executive Azran Osman Rani said the proceeds from the IPO would finance fleet and route expansion to cement its position in its core markets in Australia and Asia.
The carrier will take delivery of 23 Airbus A330-300 planes over the next four years beginning in July, while it has also placed a firm order for 10 A350-900s.Detailing the airline's strategy, Azran said it will bolster its position in lucrative markets like Australia, China, Taiwan, Korea and Japan. It would be followed by adding frequencies to current routes, opening new destinations including to Adelaide in Australia, Nagoya and Fukuoka in Japan and Busan in South Korea.