AirAsia X Bhd , the medium haul budget carrier of AirAsia
Bhd , is offering for sale 790.12million shares or 33.3% of the company in
an initial public offering (IPO) that will utilise proceeds to reduce bank
borrowings and for capital expenditure.
The IPO will comprise 592.59 million new shares and 197.53mil existing
shares, with the new shares representing 75% of the IPO proceeds while the
remainder of the proceeds will go to its promoters.
Reuters reported that the IPO, expected to debut by January, was expected
to raise about US$250mil (RM750mil) for AirAsia X.
Based on Reuters ' own calculation, the total IPO of 790.12 million shares
could be worth 97 sen per share.
However, AirAsia X has given no information on pricing, size of the listing
or a timeframe for the IPO. The par value of the shares is at 15 sen a piece,
and the price of the IPO will only be fixed after a book building exercise, for
which the dates were not disclosed in the document.
Meanwhile, Bernama quoted chief executive officer Azran Osman-Rani as
saying that the company submitted the proposal to the Securities
Commission few days ago and expected to receive the nod by middle of
next month.
“We are expecting to get the approvals by mid-December and if everything
goes well, we hope to be listed by early next year,” he told reporters at
AirAsia X's fifth anniversary celebrations here yesterday.
In its draft prospectus released yesterday, AirAsia X said it would use more
than half or 55.1% of the proceeds to repay bank borrowings, while 21.5%
for capital expenditure which includes the acquisition of engineering and
aircraft, as well as for expansion of new hubs in the future.
It said the balance 20.2% would be used for working capital and the rest for
listing expenses.
AirAsia X currently serves 12 destinations across Asia, and Australia, and
conducts chartered flights to the Middle East. Operating a fleet of nine
A330-300s and two A340-300s, it represents the largest low cost carrier
wide-body aircraft seat capacity in the Asia Pacific region.
For the six months ended June 30, 2012, the company recorded a net loss
of RM29.1mil on a revenue of RM941.9mil.
On its operations, it said for the six month ended June 30, 2012, revenue
from passenger seat sales on scheduled flights decreased by RM30.3mil, or
about 4.5%, to RM640.4mil for the six months ended June 30, 2012 versus
RM670.70mil in the previous corresponding period.
“This decrease was due primarily to a 4.7% drop in seat capacity in the six
months ended June 30, 2012 (H1, 2012) as compared to the six months
ended June 30, 2011as a result of a reduction in the average number of
aircraft during the period from 11 to 9 caused by the wet lease of our two
A300-340s to third parties during H1, 2012,” it said.
Ancillary revenue including AirAsia Insure increased to RM167.2mil, or
about 20.5%, for H1, 2012 from RM138.7mil a year ago.
“This increase was due primarily to the overall increase in number of
passengers carried in H1, 2012, revisions to our rates relating to certain of
our ancillary products and the introduction of Optiontown as a new ancillary
product,” it said.
AirAsia X said fuel costs decreased 3.5% to RM483.1mil in H1, 2012 from
RM500.7mil a year ago, mainly due to a 6.7% decrease in fuel consumed
in H1, 2012 from a year ago.
For the year ended December 31, 2011, AirAsia X made a net loss of
RM96.7mil on the back of RM1.86bil in revenue.
According to its draft prospectus, its revenue grew from RM230.7mil in
2008 to RM1.9bil in 2011, representing a compounded annual growth rate
of 100.6%.
As at June 30, 2012, it had RM1.369bil of property, plant and equipment,
including RM51.9mil of aircraft engines and RM1.246bil of aircraft frames
and service potential. Post IPO, its promoter and substantial shareholder,
Aero Ventures Sdn Bhd will hold about 34.4% of the company, while second
largest shareholder AirAsia Bhd will hold 12.1%, following with Orix Airline
Holdings Limited with a 7.2% stake.
Besides Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun ,
the other board members include former International Trade and Industry
Minister Tan Sri Rafidah Aziz and former Bursa Malaysia Bhd CEO Datuk
Yusli Mohamed Yusof,
It has also appointed ECM Libra Group managing director Lim Kian Onn and
ECM Libra chairman Datuk Seri Kalimullah Masheerul Hassan.
AirAsia X also said it did not have any formal dividend policy, but the board
intends to adopt a progressive dividend policy, subject to factors including
but not limited to its financial performance, cash flow requirements,
availability of distributable reserves and capital expenditure plans.
The St