Malaysia's AirAsia X to raise up to $123m in rights issue, new shares

Malaysia’s AirAsia X Bhd said on Monday it proposed raising 500m ringgit ($123m) through a rights issue to existing shareholders and a share subscription for new investors. The airline said it intends to raise up to 300m ringgit in its rights issue. It also proposed issuing and allotting new shares through subscription by a special purpose vehicle, of up to 200m ringgit shares, and an option for the vehicle to subscribe for additional 15% of the enlarged total number of AAX shares. The fundraising will be undertaken after the completion of a debt restructuring scheme proposed in October, that its creditors will have to approve. “Shareholders funds after the capital reduction remains negative but the consolidation of shares post-capital reduction will provide a platform to seek fresh funding from existing shareholders,” the airline said. <br/>