Uriel Aviation Holdings bought Zuji from Australia’s Webjet in 2016.
AirAsia said a preliminary agreement signed last year for a venture with China Everbright Group and the Henan government has lapsed and won’t be extended.
There are now more than 10 companies testing vehicles at the facility at Nanyang Technological University in the west of Singapore
The decision would deal a setback to construction and rail companies in Asia, including those from China and Japan, that are keen to gain a slice of orders.
The fundraising plan comes as Hyundai Heavy and other shipyards struggle with declining orders amid overcapacity and weak oil prices, forcing companies to reform and spin off some businesses.
The purchase is the first by the Middle Eastern airline in an Asian carrier.
China is the new leader of shipping trade to the Americas.
It would facilitate a potential sale of some of the businesses.
The move would give the second-largest US carrier a bigger foothold in Asia.
Doosan Bobcat Inc., a unit of South Korea’s biggest construction equipment maker, cut the size of a proposed share offering by 60 percent to as much as $872 million and reduced the price to boost demand.