Air Asia X improves trading debut following US $310M IPO
Air Asia X, a long-haul budget carrier, marginally increased in its trading debut after it secured US $310 million following this year's biggest initial public offering.
The Malaysian low-cost airline's shares were on top of the active list as it earned MYR 1.27, a 1.6% increase from its MYR 1.25 IPO price.
Air Asia X, controlled by its founder Tony Fernandes along with several other Malaysians, would use US $233 million (MYR 741 million) of the IPO proceeds to pay off bank debts and fund expansion plans as it prepares to take on competition from Qantas Airways' Jetstar and Singapore Airline's Sccot.
The IPO consisted of both public issuance of new shares and sale of existing shares. Aero Ventures, which was Air Asia X's biggest shareholder, dropped it stake in the company from 52.2% to 34.4%. It was the primary seller of existing shares.
Just last year, Virgin Group's Richard Branson, owner of Virgin Atlantic Airways, sold his 10% shares in the Malaysian air carrier.