Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 1-Philippines AirAsia delays IPO to 2020 or 2021

Published 10/09/2019, 01:59 PM
Updated 10/09/2019, 02:00 PM
UPDATE 1-Philippines AirAsia delays IPO to 2020 or 2021
CAPI
-

* IPO targeted between Q3 2020 and Q1 2021
* Company to focus on restructuring, internal funding
* Record revenues seen this year

(Adds details, background)
By Neil Jerome Morales
MANILA, Oct 9 (Reuters) - The Philippine unit of AirAsia Bhd
AIRA.KL is postponing its initial public offering (IPO) to
next year or 2021 as it focuses on corporate reorganisation and
seeking funds from existing shareholders, its chairman said on
Wednesday.
The low-cost airline has been looking to go public and raise
around $200 million since 2015, but has shelved its plan several
times because of weak markets and volatile oil prices.
"According to our estimated timeline, we are looking at the
third quarter next year to first quarter of 2021," Philippines
AirAsia Chairman Joseph Omar Castillo told reporters.
Another major consideration would be a good performance of
the stock market, Castillo added.
The company is being restructured after Filipino lawmaker
Michael Romero bought out some investors in June to become the
airline's single largest stockholder. The budget carrier plans
to raise cash through common and preferred shares. Philippines AirAsia was looking at a $600 million valuation
and had planned to raise $200 million this year to buy aircraft
acquisition and expand its routes.
It aims to grow revenues by 39% to a record 29 billion pesos
($560 million) by carrying 10 million passengers this year, said
Philippines AirAsia vice chairman Shiela Romero.
The airline, which started its Philippine operations in
2012, has a fleet of 23 Airbus aircraft catering to Philippine
and foreign routes.

($1 = 51.78 Philippine pesos)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.