AirAsia completes IPO, makes more than US$300 million on Wednesday
AirAsia X completed its market IPO on Wednesday. The company raised more than US$300 million, according to data sources. The net proceeds should help the long-haul budget carrier expand operations amid growing projections for travel to and from the region.
AirAsia X have been very active in the equity markets as they seek to follow the successes of Easyjet Plc and Ryanair Holdings Plc, where they made substantial capital from the equity markets. The competition to build up routes and fleets among the airline companies is expected to intensify.
"AirAsia X has just gotten out from losses, and their track record is quite short. Some funds also don't like airline stocks as there are many risks involved, such as exposure to jet fuel prices volatility and terrorism," ," said Ang Kok Heng, chief analyst at Phillip Capital.
Seeking growth in the Philippines, AirAsia X bought a 49% stake in Zest Airways earlier this year. It also revealed plans to strengthen its presence in India's domestic market.
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