Asia Aviation utilises Bt2.7bn of funds from IPO

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Thai AirAsia parent Asia Aviation has spent Bt2.663 billion ($89.1 million) of the proceeds raised from its initial public offering to subscribe to new shares in Thai AirAsia, as of 31 December 2012.

The investment in the shares has raised Asia Aviation's stake in Thai AirAsia from 51% to 55%.

Asia Aviation also utilised Bt6 million by the end of 2012 for general corporate purposes, and has Bt5 million remaining from its planned utilisation of Bt2.674 billion.

Thai AirAsia has allocated most of the proceeds from its share sale to Asia Aviation for the expansion of its fleet between 2012 and 2014. The airline spent a total amount of Bt576 million on this, up to 31 December, with a further Bt924 million allocated to its fleet expansion.

Thai AirAsia had planned to invest Bt1.163 billion for working capital and general corporate purposes, but did not use any funds by the end of 2012.

Thai AirAsia has a balance of Bt2.087 billion of the Bt2.663 billion raised in the share sale.