AirAsia X finalises institutional price for IPO exercise

The retail and institutional tranches of the IPO have been priced at RM1.25 per share. Based on the Company's enlarged share capital, the market capitalisation of AirAsia X at RM1.25 per share will be approximately RM3.0 billion (or approximately US$926 million).

Offering highlights:

· The IPO comprises 790,123,500 ordinary shares, or 33% of AirAsia X's enlarged share capital, of which the primary shares offered by the Company and the secondary shares offered by certain existing shareholders of the Company represent 25% and 8%, respectively, of the enlarged share capital.
· Total amount of funds raised is approximately RM987.7 million (or approximately US$308.6 million), of which the amount raised by the Company is approximately RM740.7 million (or approximately US$231.5 million).
· Total demand for the institutional tranche was more than 10 times the base shares made available to the institutional investors. The book was multiple times oversubscribed across the entire price range.
· The results of the bookbuilding demonstrated very strong demand from investors, with participation from both domestic and international, including some of the largest global funds.

Commenting on the announcement, Tan Sri Rafidah Aziz, the Independent Non-Executive Chairman of AirAsia X, said:

"I am delighted with the overwhelming response from all investors in Malaysia and abroad. It is a testimony of investors' confidence in the performance of the Company as well as the capabilities of our management team."

"We have taken into account every factor related to fixing the price of the shares, and we have settled to price the shares at the low to mid-range to benefit our investors. As the book was about 5 times covered at the top end of the range, we would have been able to comfortably price it at the initial RM1.45 per share. We have a strong institutional investors' base including some of the largest global funds, and with the inaugural benefit scheme in place, we are confident of the listing being successful. We appreciate the support of our investors, and we look forward to a long term partnership with them."

Tan Sri Tony Fernandes, AirAsia X's Co-Founder and Non-Independent Non-Executive Director, added:

"We have met more than 3,000 retail investors in Kuala Lumpur, Kota Kinabalu, Kuching, Johor Bahru, Penang, and Ipoh. There was overwhelming demand for shares at RM1.45. To be specific, we had orders for 2 billion shares at RM1.45 and we had only 396* million shares available in the bookbuilding exercise. We want to see retail investors benefit from this IPO and this is the reason why we priced it at RM1.25. The success of AirAsia X is because of their support and we want to reward them."

• Being the Base Institutional Tranche and the number of shares under the Over-Allotment Option)

Chief Executive Officer of AirAsia X, Azran Osman-Rani, said:
"We have a strong management team, and dedicated workforce who work hard to deliver the best to our passengers. We are committed and together with our dynamic Board of Directors, we look to further enhance our leadership position in the Asia Pacific region. As we open more routes in the future, we welcome our fellow investors with us on this journey of growth."

AirAsia X is expected to list its shares on the Main Market of Bursa Malaysia Securities Berhad on 10 July 2013.