KUALA LUMPUR: AirAsia Bhd executive chairman Datuk Kamarudin Meranun and AirAsia Group chief executive officer Tan Sri Tony Fernandes have raised their stake in the airline by 16.7 per cent to 32.3 per cent after completing the long-awaited RM1.01 billion private placement of 559 million new shares.
The placement completion came on the day aviation stocks gained positive re-ratings and expected earnings growth.
The new shares were placed at RM1.80 each to Tune Life Sdn Bhd, which is equally owned by Kamarudin and Fernandes.
The AirAsia founders owned 18.9 per cent of stake previously.
Bursa Malaysia had extended the placement four times because AirAsia did not get Bank Negara Malaysia’s approval, as it involved partial offshore funding.
“The shares issuance represents (Kamarudin and Fernandes) continued commitment to support the growth and requirements of AirAsia,” said the group in a statement yesterday.
The RM1.01 billion will help AirAsia pay for its loans as well as the acquisition of aircraft, engines and parts, among others.
A total of RM343.4 million, or 34 per cent, will be used for the pre-payment and repayment of borrowings, while RM272.70 million, or 27 per cent, will be used to finance the acquisition of aircraft, engines and parts and pre-delivery payments of new aircraft.
The airline will also use RM282.8 million, or 28 per cent, as working capital, while the balance of RM101 million is for the construction AirAsia RedQ, the new headquarters in Sepang.
AirAsia rose to a high of RM2.51 yesterday before easing to RM2.47, down two sen from Wednesday.
Macquarie Equities Research kept AirAsia as one of its top airline stocks in Asia due to its leasing monetisation upside.
The firm said AirAsia’s traffic figures had exceeded its expectations by 4.9 per cent.
PublicInvest Research said
AirAsia’s operating statistics were in line with its estimates as the airline posted passenger load of 87.4 per cent in the fourth quarter of last year compared with 84.8 per cent load
in the previous corresponding period.
According to Bloomberg’s data, most analysts placed their “buy” call on AirAsia, with one placing a “neutral” and “hold” calls each, out of the 12 analysts.
AirAsia’s long-haul sister airline, AirAsia X Bhd, was the second-most active stock on Bursa after its last year’s fourth-quarter operating statistics beat most analysts’ expectations.
PublicInvest Research said AirAsia X posted a double-digit growth in traffic volume at 40.4 per cent and seat capacity of 42.9 per cent.
AirAsia X’s share price closed half-a-sen higher to 40 sen yesterday with 31.97 million shares traded.
Malaysia Airports Holdings Bhd, tipped to be the biggest gainer in the local aviation sector this year due to expected higher passenger numbers, closed higher at RM6.25.
It hit a high of RM6.27 at 10:07am before averaging at RM6.25 throughout the day.