AirAsia parent considers IPO of Philippine operations

AirAsia parent Capital A said on Thursday it was exploring financing options for its Indonesian and Philippine operations, including a potential initial public offering (IPO) for AirAsia Philippines in the near term.

Capital A Chief Executive Tony Fernandes said in June the Philippine unit was looking at an IPO next year, reviving a fundraising plan that had been shelved numerous times because of market volatility.

Bursa Malaysia stock exchange had classified both AirAsia X and Capital A as PN17, a tag given to financially distressed company, last year.

Such firms may be de-listed from the exchange if they fail to stabilize their finances within a set time frame.

Capital A said it was in the “last stretch” of finalizing its PN17 regularization plan, aiming for a full submission to Malaysia’ stock exchange in the near future.

The company reported a loss attributable of 178.8 million ringgit ($38.39 million) for the quarter ending Sept. 30, compared with a loss of 901.3 million ringgit a year earlier.

Meanwhile AirAsia X, a unit of Capital A, earlier this month met the conditions for “waiver and upliftment” from the PN17 classification. — Reuters