KUALA LUMPUR: Capital A Bhd
will exit Practice Note 17 (PN17) status today, marking the completion of a six-year restructuring exercise that included the disposal of its aviation business and a major capital reduction aimed at restoring its financial position.
Bursa Malaysia had approved the upliftment of its PN17 classification effective 9am today, following the completion of its regularisation plan, the group said in a statement on Monday.
Capital A had been classified as a PN17 company in January 2022 after its shareholders’ equity fell below the threshold required under Bursa Malaysia’s listing rules amid the severe impact of the Covid-19 lockdowns on the aviation sector.
The company said the regularisation plan was completed in January 2026 through several key corporate exercises, including the disposal of its aviation businesses to AirAsia X Bhd (AAX), the distribution and listing of AAX shares to entitled shareholders, and a High Court-approved capital reduction of about RM5.5bil.
According to Capital A, the restructuring restored the group’s shareholders’ funds to positive territory. Its remaining non-aviation businesses had recorded five consecutive profitable quarters from the first quarter of financial year 2025 (1Q25) to 1Q26, excluding contributions from the aviation segment.
Chief executive officer Tan Sri Tony Fernandes described the upliftment as a significant milestone for the company after several years of restructuring and operational challenges.
“The past six years have been incredibly tough.
“The group had sought to protect jobs while transforming itself into a more diversified business ecosystem.”
