AirAsia Group's rights issue undersubscribed by 14.87%

KUALA LUMPUR: AirAsia Group Bhd has received valid acceptances and excess applications for 1.1 billion redeemable convertible unsecured Islamic debt securities (RCUIDS) under its rights issue exercise.

This represented 85.13 per cent of the total RCUIDS available for subscription, RHB Investment Bank announced to Bursa Malaysia on behalf of the board.

Hence, the RCUIDS were undersubscribed by 14.87 per cent as at the close of acceptance, excess application and payment for the rights issue at 5 pm on 20 Dec 20, 2021.

The exercise involved the issuance of up to RM1.02 billion in nominal value of RCUIDS at 75 sen each based on the Shariah principle of Murabahah (via Tawarruq arrangement) on the basis of two RCUIDS with a warrant for every six AirAsia Group shares held on the entitlement date.

The investment bank said the total number of excess RCUIDS available for allocation was 281.75 million.

"In view that the total number of excess RCUIDS applied for was RM88.55 million, the board has decided to allot the excess RCUIDS to all the entitled shareholders and/or their renouncee(s) or transferee(s) who have applied for the excess RCUIDS in full,” it said.

RHB Investment Bank said the remaining RM193.20 million unsubscribed RCUIDS would be fully subscribed by the joint underwriters in accordance with the underwriting agreement.

"Successful applicants of the RCUIDS will be issued with warrants on the basis of one warrant for every two RCUIDS subscribed,” it added. - Bernama

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