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AirAsia X seeks US$39.7 million in fresh capital through rights issue
February 22nd 2022
AirAsia X (AAX) is aiming to raise 166 million ringgit (US$39.7 million) of fresh capital through the sale of 414 million new shares via a one-for-one rights issue at 28 sen per share. Read More » The company previously had received shareholder approval to raise up to 300 million ringgit through a rights issue and another 200 million ringgit through a special issue, but AAX chief financial officer, Andrew Littledale, said market conditions meant the LCC did not need to raise as much capital as thought. “At the beginning of 2021, we had 95 million ringgit in cash. Our cash burn for the last 14 months averaged three million ringgit a month," Littledale said. "We will be able to sit through any eventualities in the next couple of years even if borders do not open, which will not be the case. A larger fund raising is not only unnecessary but also punitively dilutive particularly to existing retail shareholders who may not be able to fund a bigger rights issue at this difficult time." AAX CEO, Benjamin Ismail, said the airline is flying three A330s. It expects to have seven of the type in the air by March 31 and all 11 of its wide-bodies returned to service by October.
