AirAsia X to raise M$760m in IPO

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AirAsia X is expecting to raise Malaysian dollar (M$) 760 million ($248 million) from its planned initial public offering (IPO), a company source confirms.

The Malaysian long-haul low-cost carrier is targeting to list on Bursa Malaysia, the country's stock exchange, in the first quarter of next year, he adds.

The carrier issued a prospectus on the Securities Commission Malaysia website last week, taking the first step towards an IPO.

It is offering 790.1 million shares - 685.7 million to institutional investors and 104.4 million to retail buyers. This accounts for 33.3% of AirAsia X's enlarged paid-up capital.

AirAsia X says it intends to use a majority of the funds to repay bank borrowings within three months of the listing. The remaining will go towards its working capital and capital expenditure to finance the purchase of additional aircraft and expand its operations.

"We believe the expansion of our fleet is expected to improve our financial performance over the coming years," it adds.