AirAsia Group plans $113m private placement for cash needs

AirAsia Group is looking to raise MYR454.5m ($113m) from a private placement of shares, to meet its cash needs over the next three to 12 months. The group is looking to sell over 668m shares, equivalent to 20% of 3.3b shares issued, at the tentative issue price of MYR0.68, which represents a 9% discount to the five-day volume-weighted average price of its shares, the group states in a Bursa Malaysia disclosure dated 21 January. AirAsia intends to use MYR146.6m within six to 12 months for settling fuel hedges, and allocates MYR135.6m to general working capital expenses over six months. Another MYR95.2m will go towards aircraft lease and maintenance payments, for use over three months, while AirAsia Digital is expected to need MYR77m within 12 months.<br/>