AirAsia X announces a smaller rights issue

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SEPANG: AirAsia X Bhd (AAX) has introduced a 1-for-1 rights issue and a particular issue to boost a whole of RM166mil.

The lengthy haul funds provider had earlier obtained shareholders approval for a bigger rights issue to boost as much as RM300mil and a particular issue of RM200mil as a part of its restructuring scheme.

The 1-for-1 rights of 414 million shares are priced at 28 sen per share, to boost RM116mil with a equally priced particular issue to boost RM50mil. All approvals have been obtained for the fundraising.

AAX chief monetary officer Andrew Littledale stated firstly of 2021 we had RM95mil in money.

“Our average cash burn for the last 14 months averaged RM3mil a month. We will be able to sit through any eventualities in the next couple of years even if borders do not open, which however will not be the case.

“A larger fund raise is now not only unnecessary but will also be punitively dilutive, particularly to existing retail shareholders who may not be able to fund a bigger rights issue at this difficult time,” he stated.

AAX chief government officer Benyamin Ismail stated: “Flying three planes in the quarter ended Dec 31, we sharply narrowed our operating loss to RM12mil as we ramped up our cargo business post the successful restructuring vote by creditors in November last year.”

“We expect to have seven planes fully operational by the end of this quarter with the current fleet of 11 wide body A330’s all flying by the end of October 2022.

“Discussions are also being held for AAX to lease at least another four planes in preparation for a full resumption of passenger flights when borders open with a targeted fleet strength of at least 15 A330s,” he added.



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