AirAsia seeks name change to Capital A


PETALING JAYA: AirAsia Group Bhd is proposing to change its name to Capital A Bhd.

In its submitting with Bursa Malaysia, the low-cost provider mentioned the proposed name “Capital A Bhd” was authorized by the Companies Commission of Malaysia (CCM) and reserved by the corporate on Dec 28 final yr.

“The proposed change of name is topic to the approval of the shareholders of the corporate at a basic assembly to be convened at a date to be introduced later,” AirAsia mentioned.

The proposed change of name, if authorized by the shareholders, would take impact from the date of issuance of the discover of registration of latest name by the CCM to the corporate, it added.

AirAsia shares closed 1.5 sen greater at 80.5 sen right now.

The firm accomplished its rights situation final week, elevating RM974.5mil to assist its general fundraising technique.

This included the complete subscription for his or her entitlements by its two largest shareholders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun, which might value them RM257.3mil.

With the extra money of RM975mil on prime of the sooner RM500mil mortgage from Danajamin, RM300mil from Sabah Development Bank and RM336.5mil raised through personal placement, the money crunch ensuing from the lockdown and the pandemic is now not as alarming, TA Research mentioned.

The brokerage mentioned it believed the brand new capital might assist AirAsia climate by means of the darkness till it sees lights on the finish of the tunnel.

For the third quarter of monetary yr 2021 (FY21), the group incurred RM676.9mil in core losses in contrast to a RM867.4mil loss within the third quarter of FY20.

For the primary 9 months of 2021, its core loss was at RM2bil versus RM2.6bil reported a yr earlier.

“Will AirAsia be classified as a PN17 company after the 18-month relief period granted by Bursa Malaysia due in January 2022? We view that chances for AirAsia to reverse its RM5.9bil deficit in shareholders’ funds by then are slim.

“Having said that, we do not think this would be disastrous as AirAsia has been sorting its way out of the woods,” TA Research mentioned in a report.

The analysis home additionally expects the tourism sector to get better in 2022 with the abolition of interstate journey bans, rest on journey commonplace working procedures and the institution of journey bubbles.

This would assist cut back AirAsia’s losses earlier than full restoration on the finish of the pandemic.

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