PETALING JAYA: AirAsia Group Bhd has proposed to undertake a private placement exercise to raise up to RM454.5mil to finance its working capital, among others.
In its filing with Bursa Malaysia, the budget carrier said the proposed exercise would entail an issuance of up to 668,394,816 of the company’s shares, representing up to 20% of the group’s total number of issued shares.
AirAsia said the indicative issue price of the placement shares was assumed at 68 sen per share, which represented a discount of 9.08% to the five-day volume weighted average market price of the company’s shares up to Jan 18 at 74.79 sen per share.
Of the total gross proceeds of RM454.5mil, AirAsia is expected to allocate RM146.6mil for fuel-hedging settlement, RM135.6mil for general working expenses, RM95.2mil for aircraft lease and maintenance payments and RM77mil for AirAsia Digital Sdn Bhd digital business units, namely airasia.com and BigPay.
AirAsia’s shares closed 1.5 sen lower at 73 sen yesterday.
AirAsia said the placement shares would be placed out to third party investors to be identified later.
The exercise was expected to be completed by the first quarter of 2021.
AirAsia said the proposed private placement would enable the company to raise funds expeditiously for working capital purposes, as well as marketing expenses and technology expenditure for the initiatives under AirAsia Digital.
“The proposed private placement which is expected to raise gross proceeds of up to RM454.5mil, will also enhance the group’s financial position with a marginal increase in the net assets and improvement in the gearing of the group, ” it explained.
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