AirAsia parent plans potential IPO for Philippine operations

Capital A Berhad, the parent firm of AirAsia Philippines, said it would continue to expand its funding sources including through an initial public offering (IPO) for its operations in the Philippines. In a media release, the Malaysian multinational company said fund-raising efforts are continuing after the group secured debt financing amounting to $179m from Bangkok Bank and Citibank. “The impending revenue bond of $200m from the international credit market will be the first capital raise earmarked for the expansion of the airline, which will be followed by an equity raising including potential IPO issuance for AirAsia Philippines,” the group said. The company said it expects its lease liabilities to be restructured by December, adding that the group recorded revenues of 4.2b Malaysian ringgit. “In the coming months, the Group anticipates making significant announcements regarding asset disposals and public listings, positioning the company on a solid foundation for future growth,” it said. “As we approach the final quarter, we are expecting a revenue upswing, exceeding pre-pandemic levels. This optimistic outlook is based on robust travel demand during the peak season, which enables us to command premium fares and boost ancillary income,” said Bo Lingam, CEO of AirAsia’s aviation group. The financial performance of AirAsia Philippines and the overall market conditions are among the factors that could affect investors’ appetite for the planned IPO of AirAsia Philippines, analysts said.<br/>