AIRASIA X will probably join the ranks of the listed on July 10 with an initial public offering (IPO) on Bursa Malaysia that could raise up to $300 million, but the long-haul budget carrier will keep the little guy in mind. In June, it will hold roadshows dedicated to the retail investor, running in parallel with the ones for institutional investors.
The airline plans to offer 790.1 million shares to raise between US$250 million and US$300 million which will help finance aircraft purchases. By the end of 2014, it will more than double its fleet size to 25 planes, receiving seven planes this year and seven next year.
The airline brought in RM1.29 billion (S$530.8 million) in revenue for 2010 and RM1.86 billion for 2011, based on its draft exposure prospectus. Even so, pre-tax numbers spent some time in the red up until last year. For 2010, AirAsia X recorded RM98 million in pre-tax profit, albeit bolstered by a sizeable foreign exchange gain. For 2011, it lost RM131.4 million on a pre-tax basis.
But after doing away with its unprofitable European and Indian routes, 2012 perked up. Full-year revenue for 2012 hit RM1.97 billion, while the bottom line swung into the black with a pre-tax profit of RM38 million, BT understands.
AirAsia X CEO Azran Osman Rani yesterday refused to speculate on the take-up of the IPO. "You can't predict it."
Looking ahead, he said that the focus on increasing entrenchment in the countries where it has a presence - such as China, Japan, and Australia - would continue. "Even though we're more than doubling our capacity, we don't intend to add a single new country. There are cities in those same countries that we can add to. The strategy is to pick those few markets and become the leaders.
"The (next) phase of growth is following the AirAsia model and establishing joint ventures. So, basically, more concentration in same markets and cities, just from different hubs."
Asked if being listed would constrain AirAsia X's freewheeling approach to the business, Mr Azran said: "If you don't take any risk, you're facing an even bigger risk of being completely marginalised. What we're selling is our ability to keep executing."
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