AirAsia Group raises $82m from TPG execs, Aimia, others in private share placement

Visual from the company website

AirAsia Group Bhd has raised $82 million from TPG Capital executives, Aimia Inc., and others through a private share placement, the Malaysian budget airline said on Wednesday as it looks to ensure liquidity in 2021.

The airline raised 336.46 million ringgit ($81.70 million) over two tranches by issuing 470.21 million new shares, representing 14.07% of the group’s total issued shares.

The airline said investment firm TPG Capital’s founder and chairman David Bonderman and TPG Asia partners, including Tim Dattels, Ganen Sarbananthan and Zubin Irani, have invested in their personal capacity.

Hong Kong businessman Stanley Choi, chairman at Head & Shoulders Financial Group and executive director at International Entertainment Corporation, also participated.

Choi has emerged as a substantial shareholder, raising his stake to nearly 9% last month, bourse filings showed.

Montreal-based investment firm Aimia Inc and other local and foreign institutional funds also invested, AirAsia said, but did not share details of the size of the investments.

AirAsia Group Chief Executive Tony Fernandes said the placement is a significant part of the group’s fundraising plan.

“Of the gross total proceeds, AirAsia will allocate funds to support fuel hedging settlement, general working expenses, aircraft lease and maintenance payments and fund Airasia Digital business units, namely the Airasia super app and BigPay fintech platforms,” he said.

Fernandes last month said the airline expects more clarity on its fundraising efforts, including a government-guaranteed loan by the end of March.

The airline had proposed in January a private placement of up to 20% of its total issued shares, which if exercised fully, was expected to raise about 454.5 million ringgit.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.