Saudi Arabia's sovereign wealth fund is set to invest US$100mil in Malaysia's Capital A-owned budget airline AirAsia, Bloomberg News reported on Thursday, citing people familiar with the matter.
The Middle East investment forms the majority of AirAsia's about RM1bil fundraising target, with the firm also in discussions with potential investors from Singapore and Japan, the media report added.
The report, citing a person familiar with the matter, said the Malaysian airline is raising funds and offering investors up to a 15% stake at a US$2bil valuation, as it looks to target growth after pandemic-induced losses.
The parent firm expects to record a profit this year after a loss in 2024 when it recorded a one-off charge in its aviation business.
Capital A is also offloading the budget carrier to long-haul unit AirAsia X Bhd
to consolidate the operations under a single AirAsia brand.
Asian airlines in general faced a challenging year in 2024 with supply chain problems disrupting operations and exposing them to strengthening consumer protection rules, according to industry executives. - Reuters
