News
AirAsia X receives approval for rights issue; seeks to jump-start airline
April 27th 2021
AirAsia X (AAX) said today it had received approval from Kuala Lumpur's Bursa Malaysia to proceed with the company's proposed share consolidation and the issuing of up to three billion new shares through a rights issue and up to two billion new shares through a subscription option. Read More » Late last week, AAX said the rights issue would be priced at an indicative discount ranging from 30% to 55% to its Theoretical Ex-All Price (TEAP), taking into consideration the need to set a price "deemed sufficiently attractive to encourage subscription". AAX said the additional subscription shares would be priced at the higher end of the rights issue price or 25% of the five-day volume weighted average market price up to and including the date immediately preceding any exercise of the subscription option. AirAsia X deputy chairman, Lim Kian Onn, told Malaysia's The Star newspaper last year the company was seeking to raise 500 million ringgit (US$122 million) "to jump-start the airline". The LCC group also was intending to reduce the shares on issue by 90%, with 10 existing ordinary shares consolidated into one share, and restructure its debt to a principal amount of 200 million ringgit.
