KUALA LUMPUR (July 21): AirAsia Group Bhd is seeking an extension from Bursa Malaysia to complete its private placement.
In a bourse filing, the low-cost carrier said it had submitted an application to Bursa on Monday for an extension of time from Aug 2 up to Dec 31 for the company to implement the private placement.
The group in January proposed to issue up to 668.39 million new shares or 20% of its current share capital for private placement to raise up to RM454.51 million.
The group said the private placement was proposed in response to a series of unexpected events outside the group’s control, primarily attributed to the outbreak of the global Covid-19 pandemic which has created significant challenges for the airline industry.
Of the fresh capital raised, the airline will allocate RM146.63 million to be used to settle fuel hedges, and RM135.57 million for its working capital requirements.
Meanwhile, some RM95.19 million will be for its aircraft lease and maintenance payments, and RM76.96 million is earmarked for its digital businesses airasia.com and BigPay.
At noon break, AirAsia was unchanged at 82.5 sen, valuing the group at RM3.22 billion.