Published: Wednesday October 10, 2012 MYT 3:31:00 PM
AirAsia founders to kick off IPO spree in 2013
KUALA LUMPUR: The founders of Malaysia's AirAsia Bhd, Tan Sri Tony Fernandes and Datuk Kamarudin Meranun, are set to kick off an initial public offering spree in 2013 with three listings worth more than US$500mil.
The plan comes at a time when privatisation schemes and economic growth have cemented Malaysia's position as Asia's top destination for IPOs, accounting for US$7.9bil of the US$30.03bil worth of new listings in Asia-Pacific this year, according to Thomson Reuters data.
By comparison, IPOs in Hong Kong have raised US$1.81bil and those in Singapore have raised US$3.44bil so far this year.
Malaysia's Tune Group, a financial services-to-discount hotel conglomerate owned by Fernandes and Kamarudin, is expected to launch US$65mil IPO of its insurance arm, Tune Insurance, not later than the first quarter of 2013, according to two sources with direct knowledge of the deal.
"They are looking at a market capitalisation of US$260mil," one of the sources told Reuters on Wednesday, declining to be named as the matter is still private.
CIMB Group Holdings Bhd, ECM Libra Financial Group Bhd and RHB Capital Bhd are involved in the flotation, said the second source.
Fernandes and officials with Tune were not available to comment.
Meanwhile, AirAsia's long-haul arm, AirAsia X, recently hired CIMB, Malayan Banking Bhd and Credit Suisse Group AG for a US$250mil IPO expected early next year.
The group is looking to list its Indonesia operations, Indonesia AirAsia, by the first quarter of next year in a deal that could raise up to US$200mil.
The listing plans also come at a time when Fernandes is stepping down as the chief executive officer of the Malaysian-listed airline to focus on regional growth through Indonesia.
The group's plan to buy up to 100 Airbus jets, potentially worth around US$9bil, is designed to fuel the growth of what is becoming a cluster of related airlines under Fernandes, who placed a record order for Airbus jets last year.
With an operating fleet of more than 116 aircraft, AirAsia has ordered a total of 375 Airbus jets as part of dramatic expansion plans that include the acquisition of Indonesia's Batavia Air. AirAsia has said it will accelerate deliveries as rising demand helps it offset high fuel costs.
Not all analysts are convinced by AirAsia's expansion plans. Some local bankers say profits could be crimped by pressure from potential losses at start-up units in the Philippines and Japan and competition from new players such as Malaysia's Malindo Airways next year. AirAsia's shares have fallen 20.26 percent in the past three months.
AirAsia made a net operating profit of RM130.94mil(US$42.64mil), excluding one-off items, in the second quarter this year, down slightly from the same quarter last year. Net profit was boosted by a one-off gain of RM1.16bil following a share sale at its Thai unit. - Reuters
- Daughter hopes freed dad will be home in time for her wedding
- DPM: Immense contribution by Hopo, Hakka and other clans
- Security guard shoots neighbour mistaken for a monkey
- Court upholds 6-year jail, fine on Sabak Bernam MP, aide
- Raja Nazrin: Desecrating flag an attack on nation's sovereignty
- Armed Forces' English Channel swimmers get cash, promotion
- Chor: Tenders to be called for 800-tonne capacity incinerators
- Chua: Some 1,000 people out of poverty line
- Muhyiddin: Govt to help all Malaysians irrespective of political inclination
- Pasar malam trader gets five years jail for raping 13-year-old
- Sand mining operator jailed a day, fined RM10,000 for bribery
- ‘Samurai woman’ to undergo month-long mental evaluation
- Nazri: Musa Aman cleared of corruption by MACC
- Malaysian who killed Aussie surgeon to be deported soon
- Datuk, two others arrested for allegedly cheating developer of RM1.6mil
- Pelaburan MARA plans to enter Indonesian market next year
- Rating cut piles pressure on Spain to seek aid
- European banks drag heels on loan sales: survey
- Alam Maritim secures RM69.22m charter contract
- KLCI closes in the red as trading volume shrinks
- Mega Palm may sell some land parcels to repay debt notes
- AIA Group to be top life insurer in Malaysia
- Malaysian economy to continue depending on oil, CPO, exports
- Cash-flush shareholders drive Singapore buyouts
- Malaysia targets 5.5% total energy capacity from renewable sources by 2015
- Asia Media continues to decline
- Bakrie family propose divorce from Bumi Plc
- AirAsia buys 121.6m shares of Tune Ins for RM16m
- Top Glove Q4 earnings surge 143% to RM63.5m
- Asia's rich crave luxury hand-crafted cars from M'sia
- Mo Yan of China wins Nobel Literature Prize
- Mo Yan: Chronicler of a turbulent Chinese century
- Spokesman: Putin's scheduled Turkey visit postponed
- Two Uzbek climbers missing after Nepal avalanche
- New-look eBay moves toward social shopping
- Reports: China bloggers expose more corruption
- Taiwan minister quits after Facebook girlfriend post
- Giant Chile telescope spots unique spiral structure
- Bali bombing victims search for closure 10 years on
- Australian PM says Bali bomb trip significant
- Turkey confiscates "objectionable" cargo aboard Syrian plane, says minister
- Children of Peru's ailing Fujimori seek pardon
- Defending champ Choi shares lead with Webb
- India's Bhullar takes lead in Macau
- Gavazzi takes stage three in Beijing
- What next for Armstrong after devastating report?
- Armstrong appears unaffected by USADA claims
- Governing body to study USADA Armstrong claims
- Webber accepts Grosjean apology
- Title race wide open, says Alonso
- Sauber appoint first female team principal
- USADA: Armstrong dope conspiracy biggest in sport
- Stoner's return complicates MotoGP
- Club create MHL history by winning third straight double
- Vettel and Alonso to duel for Formula One lead in Yeongam
- Gangnam Style hits South Korean Grand Prix
- Hoon-Tan are good role models for other pairs, says Kim Her
- AirAsia CEO Tony Fernandes said to be in talks to buy S. Korean airlines
- Asia's rich crave luxury hand-crafted cars from M'sia
- Ex-director Rajendram jailed, fined for furnishing false statements to Bursa
- Study: Higher a country's chocolate consumption, more Nobel laureates it spawns
- Legal tussle for Pusat Bandar Damansara buildings
- ING announces sale of M'sian insurance unit to AIA for US1.6bil(update)
- Retirement rule to affect TM’s profit
- AIA Group to be top life insurer in Malaysia
- Cash-flush shareholders drive Singapore buyouts
- AIA Group Ltd agrees to buy ING’s M'sian insurance unit for US$1.5bil to US$1.7bil
- Pelaburan MARA plans to enter Indonesian market next year
- Rating cut piles pressure on Spain to seek aid
- European banks drag heels on loan sales: survey
- Alam Maritim secures RM69.22m charter contract
- KLCI closes in the red as trading volume shrinks
- Mega Palm may sell some land parcels to repay debt notes
- AIA Group to be top life insurer in Malaysia
- Malaysian economy to continue depending on oil, CPO, exports
- Cash-flush shareholders drive Singapore buyouts
- Malaysia targets 5.5% total energy capacity from renewable sources by 2015
- Ipoh Rising
- Easing LDP traffic flow
- Houseowner committee welcomes DBKL's decision
- Legal tussle for Pusat Bandar Damansara buildings
- MBPJ's RM344mil budget
- Letter and permits on land-clearing tell different stories
- Bangsar residents crestfallen over commercialisation of Jalan Maarof
- Malton unit to develop Penang land