Orix, Perigon to make partial exits from Air Asia X via IPO
Orix Corp. and Perigon Advisory will make partial exits from regional budget carrier AirAsia's long-haul subsidiary through an IPO that is targeting up to $370 million.
AirAsia X is offering 790 million shares, comprising an institutional tranche of 538 million shares and a retail tranche of 252 million shares. The indicative price range for institutional investors is MYR1.15-1.45 per share, while retail investors will pay MYR1.45 per share.
About 75% of the offering will be new shares and the proceeds have been earmarked for repayment of bank loans, capital expenditure and general working capital.
Orix and Perigon Advisory's Manara Infrastructure Fund invested MYR250 million (then $77.2 million) for a 20% stake in AirAsia X in 2008. Each investor currently holds 10.9% and they will offload 1.8% apiece in the IPO. The additional sale of new shares will see their holdings diluted to 6.4% after the offering.
Passenger traffic in the Asia-Pacific region more than doubled between 1998 and 2012, according to research firm Strategic Airport Planning. AirAsia X's passenger numbers have grown from 1.9 million in 2010 to 2.6 million in 2012, with revenue jumping from MYR1.29 billion to MYR1.97 billion over the same period.
AirAsia X is looking to strengthen its position in the key markets of Australia and East Asia, focusing on flights of 4-8 hours. The airline currently has a fleet of 13 planes, and this is expected to increase to 25 by 2014 and 43 by 2018.
AirAsia X is scheduled to list on July 10. CIMB, Credit Suisse and Maybank are joint global coordinators for the offering.
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