Naim 6 Report post Posted January 23, 2007 (edited) 23/1/07 AirAsia looks at possible offshore listing By Mark Bendeich Email us your feedback at fd@bizedge.com Asia's largest budget airline, AirAsia Bhd, is looking at a possible listing in London or Hong Kong to tap a wider pool of foreign investors, a source close to the firm said on Jan 22. AirAsia has been listed in Malaysia since it floated in November 2004, but has just one locally listed peer, Malaysian Airline System Bhd (MAS), and its investor base is far more international than the wider market. Many investors want to help fund the development of budget airlines in Asia, but demand a risk premium for Malaysia because stocks are traded in ringgit, which is not a globally traded currency, and because the local market is not very liquid. "They are exploring the possibility of a secondary listing in order to tap foreign-based shareholders and also for compliance with international accounting standards," the source said. An AirAsia spokesman declined to comment. AirAsia, valued at just over US$1 billion (RM3.5 billion), is looking to raise up to US$200 million in equity to help fund its expansion, the Asian Wall Street Journal reported on Jan 22, though the source told Reuters that fresh equity would not be needed to fund new plane purchases until next year. The airline said this month it wanted to double its Airbus A320 fleet to 200 as it looked to expand. AirAsia is only exploring the option of an offshore listing and has set no time frame, but the source said a secondary listing could be achieved as early as this year, especially if a dispute over tax accounting in Malaysia was not resolved. "If push comes to shove, they would put it as a top priority," the source said. "It really depends on the situation." AirAsia is in dispute with Malaysian regulators over the accounting treatment of its tax liabilities. The airline receives large tax concessions in Malaysia in recognition of the major investments it is making in new planes. AirAsia says Malaysian accounting rules take a tougher line on deferred tax than international accounting standards. The carrier wants its accounts to reflect the fact that it will be sheltered from tax for "many years", but local regulators have insisted on the Malaysian treatment. The two approaches give very different profits, AirAsia said in its last full-year accounts. AirAsia reported net profit of RM88.4 million for the year to June 30, but said earnings would have been RM242 million under the international standard. The Securities Commission, accounting standards board and finance ministry are debating AirAsia's preferred accounting treatment, the Business Times said in November. Regardless of tax treatment, AirAsia would benefit from a listing offshore, especially in London, home to Europe's two biggest budget carriers, Ryanair and Easyjet, said Hong Kong-based analyst Paul Dewberry of Merrill Lynch. "It makes sense, given the foreign shareholdings," he said. AirAsia has a wide spread of foreign investors from the United States, Europe and Singapore, but it is relatively thinly traded with an average daily volume of 5.5 million shares, or just 0.23% of its share base, since the start of 2006. "It (a secondary listing) would give it a bit more liquidity. Some fund managers have expressed frustration that they can only trade the stock in Malaysia," Dewberry said. AirAsia shares are down 4% since the beginning of last year. They fetch 30 times forecast earnings per share for 2006/07, and 22 times for 2007/08, Reuters data shows. The more mature Ryanair trades at 24 and 19 times forecast earnings. -- Reuters http://www.theedgedaily.com/cms/content.js...0c4b00-bc8f73b7 Edited January 23, 2007 by Naim Share this post Link to post Share on other sites
flee 5 Report post Posted January 13, 2017 AirAsia to list in Hong Kong BY B.K. SIDHU PETALING JAYA: AirAsia Group is looking at a secondary listing of the airline, AirAsia Bhd, on the Hong Kong Stock Exchange (HKSE) and hopes that it can take place before the middle of this year. Towards this end, it is believed that China Merchants Bank, an investment bank from China, is likely to get the job to advise and make the relevant submissions for the dual listing. Tan Sri Tony Fernandes, when contacted, confirmed that there are plans to seek a listing on the HKSE. “The plan is to list a portion of AirAsia Bhd shares in our Hong Kong-listed vehicle. This provides us access to new capital if required. “We have a large pool of investors in North Asia, while China is a large part of our market. So, we decided on a dual listing in Hong Kong. More: http://www.thestar.com.my/business/business-news/2017/01/13/airasia-to-list-in-hong-kong/ Share this post Link to post Share on other sites
