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By Anna Maria Samsudin
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May 23 2007  LOW-COST long-haul carrier AirAsia X may raise funds from an initial public offering (IPO) in three years, said Datuk Kamarudin Meranun, chairman of its parent, Fly Asia Xpress (FAX).
An IPO would also help the budget carrier's private equity investors to cash in on their investments. AirAsia X would build up its business and brand over the next three years to prepare for the IPO. Sepang Aircraft Engineering Sdn Bhd (SAE) would carry out the services in a deal valued at RM50 million a year. Witnessed by Deputy Prime Minister Datuk Seri Najib Razak and Transport Minister Datuk Seri Chan Kong Choy, AirAsia was represented by chief executive officer Datuk Tony Fernandes while SAE was represented by its CEO, Syed Budriz Putra. On news of a possible reverse takeover bid by AirAsia X, Fernandes, who is also FAX director, said it is among the options that is being considered. He denied an earlier report that it may make a bid for ECM Libra Avenue Bhd. "Reverse takeover is an option. If there's a company, that has cash, and feel that they would like to enter the business that we are in, then it is something that their board of directors should look at," he said. In addition to this, Fernandes, who is also the chief executive officer of AirAsia, said that the airline is considering a dual listing for AirAsia in the US and Europe. Aside from enabling overseas investors to gain access to its shares, he explained that it would also spur more coverage from investment analysts overseas. "Investors in the US and Europe understand the low-cost model better. They are in our shares but are not able to get it," he said. Meanwhile, SAE chief executive officer Syed Budriz Putra said the company aims to position Malaysia as the regional service centre for the A320s aircraft. |
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