AirAsia, holder of 49% stake in Indonesia AirAsia through AirAsia International Ltd, announced it will not proceed with the planned IPO of its LCC unit in 4Q2011, but will instead proceed in 1Q2012, according to an Indonesia Finance Today report. The postponement was caused by the projected market conditions in the period, which are not conducive for an IPO.
Indonesia AirAsia to postpone IPO until 1Q2012
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Southeast Asia is a region with enormous growth potential but a relatively cloudy outlook for airlines given the intense competition and overcapacity concerns. Demand is on the rise, boosted by a growing middle class, rising discretionary incomes and relatively strong economies.