Malaysian low-fare carrier AirAsia has completed its initial public offering (IPO), raising 863.3 million ringgit ($227 million) that will enable it to renew its fleet and expand its route network.
The 560.4 million shares offered to institutional investors were sold at 1.25 ringgit each while the 140.1 million shares offered to the public sold for 1.16 each - below the indicative price of 1.40 ringgit. In its prospectus AirAsia said the final retail price would be set below the institutional share price.
AirAsia's targeted price range for its IPO was 1.20-1.50 ringgit per share, meaning the result came in at the low end of expectations. It says the institutional tranche was 3.5 times subscribed while the public offer was 1.5 times subscribed.
The 700.5 million shares sold - nearly 85% of which were new shares - make up around a third of the carrier's enlarged share capital.
AirAsia says it is "very pleased with the level of interest" in its IPO, through which it raised gross proceeds of 717.4 million ringgit. It plans to use the funds in part to revamp its fleet with new narrowbody aircraft from Airbus or Boeing and further expand its international route network.
NICHOLAS LONIDES /SINGAPORE
Source: Flight International
