Nok Airlines Co. and AirAsia X announced that they will sell shares in an initial public offering. The funds will be used for the firms' expansion plans as Asian economic growth is driven towards travel.

AirAsia X is the long-haul arm of AirAsia Bhd. The company is planning to raise as much as US$370 million in an IPO. This will be held in Malaysia according to a term sheet taken by Bloomberg News.

Nok Air is controlled by Thai Airways International Pcl (THAI). According to the company, it plans to get US$106 million from its IPO.

According to the said term sheet, institutional investors can bid for Malaysia-based AirAsia X at a range of 1.15 ringgit to 1.45 ringgit price per share. In a report stated today in the Star newspaper, the price for individual investors was set at 1.45 ringgit. The carrier can get as much as US$426 million upon exercising its greenstone option.