PETALING JAYA: The cloud surrounding the listing date for AirAsia X Sdn Bhd’s US$250 million (RM774.75 million) initial public offering (IPO) will be cleared soon after AirAsia Bhd’s Tune Ins Holdings Bhd IPO on the Malaysian stock exchange tomorrow.
There were recent reports that AirAsia X may delay the listing for some time after the general election.
However, AirAsia X CEO Azran Osman Rani, when asked about the reports, said: “No decision has been made on the listing so far. We are waiting to see the outcome of Tune Ins listing.”
He added that the reports were just speculative. “All we are doing is completing our 2012 full-year audit so that we can update our Securities Commission application and prospectus to include the full-year 2012 results,” he said without indicating when the listing could materialise.
If the Tune Ins IPO fares above expectations at the local bourse, the AirAsia X listing could likely happen before the general election.
However, if Tune Ins does not rake up a good uptake, AirAsia X IPO may be delayed. AirAsia X, the medium-haul budget carrier of Southeast Asia’s largest budget airline by fleet size, has to go through a book building process before it decides to list.
Meanwhile, Tune Ins, an insurance company controlled by Tony Fernandes, plans to raise as much as RM222.22 million from its share sale exercise.
The indicative price of the shares after the book building process was fixed at RM1.35 per share for both institutional and retail shareholders, a notch below the price that was estimated earlier.
The general election is required to be held by June 27, but it is expected to take place earlier. The elections usually will cause a stir in the equity market in the country as investors turn jittery before and immediately after the national polls.
At such a time, any company may avoid entering the markets.
The IPO proceeds of AirAsia X will be used to repay bank loans, while around a fifth will fund capital expenditure, including the purchase of equipment and spare parts for aircraft, according to the company’s prospectus.
AirAsia X owns a fleet of nine Airbus A330-300s for scheduled services and has two A340-300s for wet-lease and charter operations flying to 12 destinations across Asia and the Middle East.
The company has appointed CIMB Investment Bank Bhd as its principal advisor for the IPO. Maybank Investment Bank Bhd, CIMB and Credit Suisse are the joint global coordinators.