Malaysia-based aviation firm Capital A Berhad plans to launch an initial public offering (IPO) for its subsidiary, AirAsia Philippines, the company said in a press briefing on Wednesday.
Tony Fernandes, chairman of Capital A, which owns 100 percent of AirAsia Philippines, said the size of the IPO will range from 20-30 percent of AirAsia equity shares as part of efforts to raise funds for expansion and purchases of new aircraft.
Fernandes told reporters the IPO “is still being worked on, but rather than sell it to an individual or a company, we are focused on listing it on the Philippine Stock Exchange.”
Fernandes said the IPO listing is expected to happen within the next 12 months.
Capital A is also considering backdoor listing as another option.
Backdoor listing happens when a company either acquires or merges with another publicly listed firm.
“We’re looking at a few options (including backdoor listing) that have been given to us by the investment bank,” Fernandes said.
He emphasized that the funds will be used to support expansion and the purchase of additional aircraft.
Fernandes said the company will allocate three to four aircraft from the 14 aircraft deliveries scheduled for Capital A this year to augment domestic and international flights.
The company is considering Manila as a hub for flights to the US, targeting ASEAN travelers, he said.
“We will bring in wide-body capacity into the Philippines sooner rather than later, and I’ve already alluded to plans in the West Coast of America first and then moving on,” Fernandes said.
“We’re not just targeting Filipinos, we’re targeting people from ASEAN to use Manila as a base, and after that, Japan, Korea, and southern China,” he said.
The company is also expanding to Cebu, “so, Manila is the obvious choice, although we are talking to Cebu as well,” he added.
Last year, AirAsia posted a 17 percent increase in passenger traffic, carrying 6.3 million passengers, compared with 5.36 million the previous year, Civil Aeronautics Board data showed.
