BRENDAN SOBIE / SINGAPORE
Malaysian maintenance and modification company Airod is considering an initial public offering (IPO) to help fund a drive to expand its international business.
The IPO study is separate from an effort to sell a 20-40% stake in Airod to BAE Systems. The firms signed a memorandum of understanding five months ago to investigate a tie-up and a decision is due in about two months.
Airod chief executive Kamil Aziz says the company is "looking at listing" on the Kuala Lumpur stock exchange this year. One individual, Tan Sri Ahmad Johan, now owns 90%, and the government holds a golden 10% stake.
Aziz says Airod's business is already half international and half domestic. But the company hopes to further expand the international contribution, mainly by finding international customers for its modification division.
Airod offers several Lockheed Martin C-130 modification products, including avionics, airframe stretches and centre fuselage tanks, that have so far only been sold domestically. Airod also hopes to export avionics upgrades and firefighting kits for Mil Mi-17 and Mi-171 helicopters.
Airod's larger maintenance business already has several international customers, including several air forces and a few regional airlines. The BAE tie, if pursued, would expand Airod's military maintenance capability through either an equity stake or a joint venture maintenance facility.
Source: Flight International
