Philippines’ AirAsia seeks to raise $250m via IPO in mid-2018

A member of ground staff walks under the wing of an AirAsia plane at Kota Kinabalu airport, Malaysia, November 30, 2015. REUTERS/Olivia Harris/Files

The Philippines unit of AirAsia Bhd is seeking to raise up to $250 million via an initial public offering (IPO) in mid-2018 to fund its expansion programme, its chief executive said on Tuesday.

Asia’s biggest low-cost airline, which has nine units in the region, is beefing up its fleet in the Philippines amid an expected long-term boom in budget air travel. AirAsia first raised the prospect of listing its Philippines unit in 2015, planning at that point to take the airline public as early as 2017.

“We are working on the IPO, hopefully in the middle part of next year,” Philippines AirAsia CEO Dexter Comendador told Reuters.

Philippines AirAsia had initially aimed to raise $200 million but raised its target to fund purchases of more aircraft and to expand its route network, Comendador said.

The airline, which started Philippine operations in 2012, hired BDO Capital and Investment Corp as its underwriter.

Its fleet will reach 70 aircraft in the next 10-15 years from the current 17, Comendador said.AirAsia is one of the largest customers of the Airbus A320-family of jets.

The airline has a 10 percent share of the air travel market in the Philippines, one of the world’s fastest growing economies. The local market is dominated by Cebu Pacific , followed by flag carrier Philippine Airlines, both owned by local tycoons.

AirAsia has also said it is considering a potential IPO of its Indonesian arm.

Also read:

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AirAsia CEO says leasing unit sale to South Korean group ‘imminent’

Reuters

Singapore Reporter/s

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

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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.