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AirAsia raises RM505.4M from private placement of 380M new ordinary shares at RM1.33 each

Direct News Source

15-Sep-2009 AirAsia Berhad (“AirAsia”) is pleased to announce that it has successfully completed a bookbuilding exercise for the offering of 380 million new ordinary shares of par value RM0.10 each in AirAsia, in a private placement exercise (the “Private Placement”).

CIMB Investment Bank Berhad and Credit Suisse (Singapore) Limited acted as joint placement agents for the Private Placement.

The shares were sold at an issue price of RM1.33, representing a discount of approximately 6.71% to the five (5)-day volume-weighted average price of AirAsia shares up to and including 14 September 2009 of RM1.4257 per AirAsia share. The new shares represent 16.0% of AirAsia's issued and paid-up share capital as at 10 September 2009. The gross proceeds from the offering is expected to amount to RM505.4 million.

The transaction marks AirAsia's first equity fund-raising exercise since its initial public offering ("IPO") in 2004. The Private Placement was oversubscribed with strong demand from foreign institutional investors. The final allocation and size of the Private Placement was aimed to achieve a post-placement foreign ownership level of 45.0% in line with AirAsia's Articles of Association.

AirAsia will use the net proceeds to repay part of AirAsia's borrowings and for general corporate and working capital purposes.

Dato Kamarudin bin Meranun, Deputy Group Chief Executive Officer of AirAsia said: "We are pleased that the Private Placement has received such strong support from the investment community. The size and pricing of the offering are a testament of the confidence that the investment community have in AirAsia. With the share proceeds, we will repay the more expensive borrowings and significantly strengthen our capital base, build up our cash reserves to reduce our net gearing position and increase our financing flexibility to capitalise on interesting and lucrative opportunities."