KUALA LUMPUR: Shares in AirAsia Group Bhd fell marginally in early trade Tuesday after it announced a fresh RM1bil capital raising plan. AirAsia has proposed rights issue of redeemable convertible unsecured Islamic debt securities (RCUIDS) to raise up to RM1.02bil to finance the company’s operations and business expansion. The airline is offering existing shareholders the right to buy two RCUIDS, with one free detachable warrant, for every six AirAsia shares currently held. The group has projected to raise between RM615.9mil and RM1.02bil under the minimum subscription level and full subscription level respectively. “At 8x, we value AirAsia at a discount to its global peers, Ryanair and Southwest Airlines (10x–11x forward PE) to take account of AirAsia’s relatively smaller size.

Source: The Star July 13, 2021 01:52 UTC