AirAsia plans to raise RM1.2bil to expand digital arm


The budget airline is in talks with prospective investors for what would be the first financing round for its digital arm and is working with at least one adviser on the potential deal, the sources said.

KUALA LUMPUR: AirAsia Group Bhd plans to raise as much as US$300mil (RM1.2bil) to expand its digital business arm AirAsia Digital, according to sources.

The budget airline is in talks with prospective investors for what would be the first financing round for its digital arm and is working with at least one adviser on the potential deal, the sources said.

The fundraising would involve issuance of new shares in the digital unit, the sources said.

Deliberations are ongoing and there is no certainty that AirAsia would proceed with the plan, the sources added.

A representative for AirAsia said the company is unable to comment on the plan.

With air travel taking a hit from the pandemic, AirAsia is expanding its digital operations.

Chief executive officer Tan Sri Ton Fernandes said in March the company’s so-called super app would have a turnover of US$250mil this year.

The app can be used for things such as shopping, booking flights and ordering food. The carrier is also seeking to launch a flying-taxi business as soon as next year. — Bloomberg

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