Thai AirAsia plans to raise USD150m from IPO
CORRECTION: Thai AirAsia stated it plans to raise at least USD150 million from its IPO in Bangkok in 4Q2011 [as opposed to previously mentioned 4Q2010] (Reuters/Wall Street Journal, 07-Mar-2011). Thai AirAsia has mandated Credit Suisse Securities (Thailand), CIMB Securities (Thailand) and Thanachart Securities as lead underwriters for the IPO. Thai AirAsia's registered capital is expected to increase from USD13 million to USD131 million offer. At the end of 2010, it had accumulated losses of approximately USD131 million and it planned to reduce them to USD33 million before launching the public share offer. It aimed to generate cash flow of approximately USD263-USD329 million over the next five years.
Thai AirAsia: "We should raise about USD150-USD200 million from the IPO. The proceeds of this IPO will be used to further strengthen the company's capital structure to a level appropriate to support our future operations, including the acquisition of additional aircraft. Following the strong performance in 2010, we are confident that this is the right time to access the capital markets for further expansion," Tassapon Bijleveld, CEO. Source: Wall Street Journal, 07-Mar-2011.