Indonesia AirAsia IPO may be delayed to 2014: Fernandes

Singapore
Source:
This story is sourced from Pro
See more Pro news »

AirAsia chief executive Tony Fernandes says that the initial public offering (IPO) of its Indonesian unit will likely be delayed until later this year or early 2014.

Indonesia AirAsia was planning an IPO in the third quarter of this year, but Fernandes told reporters in Malaysia that the issue is "in the process of getting regulatory approvals and this is taking time."

That means the listing is likely to slip into later in the year or possibly early 2014.

Fernandes adds that the IPO is not being put on hold due to poor market conditions that have impacted other airline IPOs in the region.

AirAsia's long-haul affiliate, AirAsia X, has received a lukewarm reception from the market since listing on the Bursa Malaysia on 10 July, with the airline's shares trading at prices lower than the M$1.25 ($0.38) issue price per share.

AirAsia holds a 49% stake in Indonesia AirAsia, with the remaining 51% owned by Indonesian trading firm Fersindo Nusaperkasa.