AirAsia X Completes $308 Million Malaysia Share Sale
(Corrects to clarify total proceeds from the IPO in first paragraph.)
AirAsia X, the long-haul arm of Asia’s biggest budget carrier AirAsia Bhd. (AIRA), overcame a stock-market rout to complete a 988 million ringgit ($308 million) share sale in Kuala Lumpur.
The airline priced its initial public offering at 1.25 ringgit per share for both institutions and individuals, according to a Kuala Lumpur stock exchange filing today. The Sepang, Malaysia-based company had marketed shares to institutional investors at 1.15 ringgit to 1.45 ringgit.
AirAsia X’s IPO survived market turmoil brought on by concerns that the U.S. Federal Reserve will reduce stimulus and China’s economic slowdown may deepen as a cash crunch worsens. The MSCI Asia Pacific Index, which tumbled by the most in two years yesterday, is now at its lowest level in six months.
AirAsia, which listed in Malaysia in November 2004, has more than doubled from its offer price and is up 19 percent this year. Asia Aviation Pcl (AAV), the parent of Thai AirAsia Co. Ltd., has risen 40 percent since its May 2012 IPO and is up 9.5 percent this year.
Nok Airlines Co. (NOK), a budget carrier controlled by Thai Airways International Pcl, is up 5.8 percent from its offer price after its shares debuted in Bangkok yesterday.
Other share sales have fallen victim to swings in equities. Macau Legend Development Ltd., a casino operator, today delayed its $788 million Hong Kong IPO because of volatile markets, two people with knowledge of the matter said.
Malaysian iron-ore producer CAA Resources Ltd. postponed an $80 million IPO earlier this month.
Budget airlines in Southeast Asia ordered at least 1,000 new aircraft in the past five years as economic expansion across the region enables more people to start flying in countries such as Indonesia, Thailand and Vietnam. Some 15 low-fare carriers started flying in the past decade across Asia-Pacific, the most profitable region worldwide for at least the fourth consecutive year, according to the International Air Transport Association.
CIMB Group Holdings Bhd., Malayan Banking Bhd., Credit Suisse Group AG and Morgan Stanley are joint global coordinators for AirAsia X’s offering. Barclays Plc, BNP Paribas SA, Citigroup Inc., CLSA Ltd. and HSBC Holdings Plc are helping manage the sale.
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