KUALA LUMPUR: AirAsia Group, the world’s top low-cost airline, is planning a series of initial public offerings (IPOs) for its affiliates, starting with the dual listing of AirAsia Bhd in either Hong Kong or New York.
AirAsia Group chief executive officer Tan Sri Tony Fernandes told NST Business there was no definite period for the IPO yet as the plan
was being reviewed by the airline’s board members.
“The board has been presented with both options (in regard to AirAsia Bhd’s dual listing),” he said on Friday, adding that there were still work to be done on the dual listing.
Fernandes said the move would allow AirAsia Bhd to reach a broader base of investors.
AirAsia Bhd has been listed on Bursa Malaysia’s Main Market since November 2004.
The airline was founded by DRB-HICOM Bhd in 1993 before the then-heavily indebted carrier was sold to Fernandes and his business partner, Datuk Kamarudin Meranun, in December 2001 for a symbolic RM1.
AirAsia Group has affiliates in Thailand, Indonesia, the Philippines and India. Indonesia AirAsia and Philippines AirAsia are slated to be listed by the third quarter of the year.
The two airlines have appointed bankers in Indonesia and the Philippines to work on the IPOs.
Fernandes said the plan was to have its affiliates in Malaysia, Thailand, Indonesia and the Philippines listed on the countries’ local bourses first, and then to combine these affiliates into a single, listed Asean holding company.
“We now have four airlines making money. Basically, the Asean engine is working. The Asean holding company is beginning to take shape.”
The holding company would be similar to European group airlines such as the International Consolidated Airlines Group SA and Air France-KLM.
AirAsia Group recorded a profit of RM2.15 billion in the 2016 financial year, up 24 per cent from the 2015 financial year. Its revenue climbed to RM12.02 billion last year from RM10.79 billion in 2015.
Fernandes said AirAsia Bhd, Thai AirAsia and Indonesia AirAsia made a positive contribution to the group operating profit.
AirAsia Bhd’s net profit increased to RM2 billion in the 2016 financial year from RM541.2 million previously. Its revenue rose to RM6.92 billion from RM6.30billion.
“We are thrilled that our dream of being an Asean airline is coming to fruition with all four companies generating profits. It’s a landmark point for AirAsia Bhd to deliver RM2 billion profit,” said Fernandes.
AirAsia plans to monetise its non-core assets, which include Asia Aviation Capital worth some US$1 billion (RM4.4 billion) and training centre AirAsia Aviation Centre of Excellence. The group will also re-launch AirAsia Japan by June.