PETALING JAYA: The morning trade saw AirAsia Group Bhd’s share price falling to a 14-month low after the budget airline said Bursa Malaysia decided to dismiss its appeal for an extension of the Practice Note 17 (PN17) relief period beyond Jan 7.
At 10am, the counter, which opened seven sen lower at 67.5 sen, fell as much as 19.5 sen or 26.17% to a low of 55 sen.
The last time the stock declined to 55 sen was on Oct 30, 2020
According to The Edge Markets, AirAsia Group said yesterday that Bursa Malaysia had dismissed its extension appeal at a time when the global aviation sector was facing the impact of Covid-19 pandemic-driven movement restrictions.
Following Bursa’s decision to dismiss the appeal, AirAsia Group is now classified as a PN17 company under the Main Market Listing Requirements (Main LR).
“The board of directors wishes to inform that after due consideration of all facts and circumstances, including all written representations and documents submitted before Bursa, Bursa has decided to dismiss the appeal.
“Further announcement will be made in due course regarding this matter,” AirAsia Group said in a filing with Bursa.
In July 2020, AirAsia triggered the PN17 suspended criteria after its external auditors, Ernst & Young PLT, issued an unqualified audit opinion with material uncertainty relating to going concern.
It was in respect of its audited financial statements for the financial year ended Dec 31, 2019 (FY19) and its shareholders’ equity on a consolidated basis was 50% or less of its share capital.
The airline had also prompted the prescribed criteria pursuant to Bursa’s Main LR, where AirAsia’s shareholders’ equity on a consolidated basis was 25% or less of its share capital and such shareholders’ equity was less than RM40 million based on the audited financial statements for FY20.
Thanks to the relief measures introduced by Bursa and the Securities Commission Malaysia, AirAsia was not classified as a PN17 listed issuer.