The IPO exercise consists of up to 790,123,500 Ordinary Shares ofRM0.15 each in AirAsia X (“IPO Shares”). This comprises an Offer for Sale of up to 197,530,900 existing Shares (“Offer Shares”) and a Public Issue of 592,592,600 New Shares (“Issue Shares”), comprising:
· Institutional Offering of up to 538,011,800 Shares comprising:
o Up to 197,530,900 Offer Shares and 79,740,200 Issue Shares to Malaysian institutional and selected investors and foreign institutional and selected investors at the institutional price to be determined by way of bookbuilding (“Institutional Price”); and
o 260,740,700 Issue Shares to Bumiputera institutional and selected investors approved by the Ministry of International Trade and Industry (“MITI”) at the Institutional Price;
· Retail Offering of 252,111,700 Shares comprising:
o 52,111,700 Issue Shares for Eligible persons;
o 50,000,000 Issue Shares for Eligible passengers;and
o 150,000,000 Issue Shares for the Malaysian public;
at the initial retail price of RM1.45 per Issue Share (“Retail Price”).
The final retail price will equal the Institutional Price, subject that it will not exceed the Retail Price.
Speaking at the official launch, the Company’s Independent Non-Executive Chairman, Tan Sri Rafidah Aziz said, “The listing of AirAsia X would enable easier access to funding from the capital market and propel the Company’s expansion plans and growth strategies. We have always been at the forefront of providing an affordable avenue for price-sensitive travellers. Apart from leveraging on the strong brand of the AirAsia Group, this exercise will enable us to enhance our stature in the aviation industry and expand our market position in the Asia Pacific Region.”
AirAsia X Co-Founder and Director, Tan Sri Tony Fernandes highlighted that, “AirAsia X’s unique proposition lies in their competitive fares and early mover advantage. We have the largest LCC wide-body aircraft seat capacity in the Asia Pacific region(2). Complete with our extensive route network and passenger base, we have one of the lowest unit cost base of any airline in the world(1). We are able to offer fares(3) that are targeted to be on average 30% - 50% lower than Full Service Carriers (“FSCs”), thus stimulating new market demand and growing passenger volumes between Kuala Lumpur and other destinations that we serve.”
The gross proceeds from the Public Issue of up to RM859.3 million based on the assumed Institutional Price and the Retail Price of RM1.45 per share are expected to be utilised in the following manner:
Details of utilisation
Estimated timeframe for utilisation upon Listing
RM ‘000
%
Repayment of Bank Borrowings
Within 3 months
285,809
33.3
Capital Expenditure
Within 24 months
280,000
32.6
General Working Capital
Within 12 months
255,450
29.7
Estimated Listing Expenses
Within 6 months
38,000
4.4
Incorporated in 2006, AirAsia X commenced low-cost, long-haul air transportation services in November 2007. Their inaugural route was from its hub at Kuala Lumpur to the Gold Coast in Australia. The airline now serves 14 destinations across Asia, Australia, and the Middle East with flights to an additional destination, namely Busan, commencing in July 2013. AirAsia X currently operates a fleet of ten A330-300s for scheduled services, and have also accepted delivery of an additional A330-300, scheduled to commence operation in July 2013,representing the largest LCC wide-body aircraft seat capacity in the Asia Pacific region(2).
Tan Sri Tony Fernandes added, “We have come a long way since the incorporation of AirAsia X. My vision of creating a domestic hub for local and international passengers alike has come to fruition. We are expanding our Group further, and this is just the tip of the iceberg. This is testament that the low-cost, long-haul airline is pioneering a breakthrough business model that can unlock similar new demand as how short-haul LCCs revolutionized travel.”
Also present at the launch ceremony was Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group.
“AirAsia X’s IPO on Bursa Securities is set to be the largest IPO in Malaysia to date for 2013. This represents the fourth IPO of a Tune Group affiliated company. Tune Group has an outstanding track record of delivering value to its investors. We hope that AirAsia X will continue in the same vein and expect its listing to add depth and liquidity to Bursa Malaysia’s airline sector. We also anticipate that AirAsia X will attract a significant investor following given its uniqueness and high growth prospects,” said Dato’ Sri Nazir.
CIMB Investment Bank Berhad is the Principal Adviser for the exercise, and Joint Global Coordinator together with Credit Suisse (Singapore) Limited and Maybank Investment Bank Berhad.
The Joint Bookrunners for the Institutional Offering (in alphabetical order) are Barclays Bank PLC, BNP Paribas (Singapore Branch), CIMB Investment BankBerhad, Citigroup Global Markets Limited, CLSA Singapore Pte Ltd, Credit Suisse Securities (Malaysia) Sdn Bhd,Credit Suisse (Singapore) Limitedand Maybank Investment Bank Berhad, Morgan Stanley & Co. International PLC, and The Hongkong and Shanghai Banking Corporation Limited.
The Joint Managing Underwriters are CIMB Investment Bank Berhad, Kenanga Investment Bank Berhad, Maybank Investment Bank Berhad and RHB Investment Bank Berhad. The Joint Underwriters are CIMB Investment Bank Berhad, Kenanga Investment Bank Berhad, Maybank Investment Bank Berhad, RHB Investment Bank Berhad, AFFIN Investment Bank Berhad and MIDF Amanah Investment Bank Berhad.
