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AirAsia IPO Already Oversubscribed
Malaysian budget airline AirAsia Bhd.'s initial public offering has already been oversubscribed by institutional investors, the local daily The Star reports in its Saturday edition, citing sources.
Most of the orders for the 560 million-share institutional tranche were made at 1.30 ringgit ($1=MYR3.7935) a share, the article states, in the country's biggest IPO this year. The institutional offer closes Thursday. The retail offer for a smaller portion of shares, 116 million, closes Wednesday.
AirAsia has said that the retail shares will be priced at the lower of either a maximum MYR1.40, or 95% of the institutional price. An institutional price of MYR1.30 would place the retail price for the shares at around MYR1.24.
At the IPO launch Wednesday, Group Chief Executive Tony Fernandes said the budget carrier is in negotiations with an airline in China and in the Philippines to expand regionally, and that a tie-up with an Indonesian airline will likely be complete by year-end. He made his remarks in a pre-recorded video since he is accompanying AirAsia officials around the world on a roadshow for the offering.
The article quotes Malaysia's Transport Minister Chan Kong Choy saying he has received a positive response to AirAsia's aim to create a partnership in China during meetings with his counterpart, China's Minister Yang Yuan Yuan.
"I am very confident this can materialize; and it will benefit not only Malaysia and China, but the whole region as well," Chan is quoted as saying.
Kuala Lumpur 23/10/04
