AirAsia Group to raise up to $113 million via private placement

AirAsia Group plans to undertake a private placement to raise up to 454.5 million ringgit ($113 million) to address immediate and near-term cash flow requirements, the Malaysian budget airline group said on Thursday.

The struggling airline, which reported a fifth straight quarterly loss in November as the pandemic took its toll on travel, has been seeking to raise $2.5 billion from loans and investors.

The proposed exercise announced on Thursday entails issuance of up to 20 per cent of its total existing shares, or 668.4 million shares, to be placed with third party investors to be identified later, AirAsia said in a bourse filing.

It will enhance the group’s financial position with a marginal increase in net assets and an improvement in the group’s gearing, or leverage. The issuance could be implemented in tranches, within six months of regulatory approvals.