AirAsia X Bhd made a modest market debut after its recent IPO (initial public offering) raised US$310 million to help the budget carrier expand its strong growth prospects for travel to and from Southeast Asia.

AirAsia X Bhd seeks to emulate the success of Ryanair Holdings Plc and Easyjet Plc,

Many Asian airlines have been active in tapping into equity markets for capital as competition increases in the build up of routes and fleets.

Chief investment officer, Ang Kok Heng, who helps manage the equivalent of $428 million as at Phillip Capital Management Sdn Bhd said, "AirAsia X has just gotten out from losses, and their track record is quite short. Some fundies also don't like airline stocks as there are many risks involved, such as exposure to jet fuel prices volatility and terrorism"

Analysts are saying that AirAsia Bhd, which competes with Qantas Airways' Jetstar and Singapore Airlines' Scoot shows steady but not exponential growth as competition is increasing in budget flights.

The initial public offerings from AirAsia's main units reflect the desire of Chief Executive Tony Fernandes to please his shareholders.