By Ashley Erika O. Jose, Reporter
AIRASIA PHILIPPINES has revived its initial public offering (IPO) plans, targeting a public listing within the next 12 months to fund its expansion, according to the company’s top executive.
“My confidence in the Philippines has grown because finally the airports are being sorted out. I think now with the airport development that is happening in Manila, we can start to see Manila as one of our important hubs,” AirAsia Group Chief Executive Officer (CEO) Anthony Francis Fernandes said during a briefing on Wednesday.
Capital A Berhad, the owner of the AirAsia Aviation Group, recently secured approval from the Malaysian stock exchange for its regularization plan to exit its PN17 status, a classification issued by the Malaysian bourse for companies in financial distress.
As part of its restructuring, Capital A will focus on non-aviation businesses while retaining an 18% stake in aviation. Its aviation business will be under AirAsia X Berhad (AAX).
“We are exploring having a direct listing on the Philippine Stock Exchange. We might be looking at selling 20-30% once aviation is sorted out,” Mr. Fernandes said, adding that the company is more interested in a public listing than selling to a private investor.
AAX earlier announced a mutual agreement with Capital A to extend the timeline for completing the proposed acquisition of the group’s aviation business.
Last year, Capital A Berhad disclosed that it had entered into a non-binding agreement with its unit, AirAsia X, for the sale of its aviation businesses — AirAsia Berhad and AirAsia Aviation Group Ltd.
AirAsia Philippines’ planned listing on the local bourse would help fund its expansion, as the company is banking on the country’s growth trajectory.
“We’re going to be modernizing the fleet with our orderbook. We have taken 14 planes this year. Some of those planes will be coming to Manila,” Mr. Fernandes said, adding that aside from Manila, the company is also expanding its hubs in Cebu.
He said AirAsia aims to strengthen Manila as a hub and attract travelers to use it as a transit point for other destinations.
“Geographically, the Philippines really suits beautifully. So, my vision is that even Japanese, Koreans, and Chinese would fly down to Manila and use us to the west coast of America and east coast of America and other [destinations],” he said.
Asked for comments, Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said AirAsia has a strong brand in Asia, and an IPO would be attractive to potential investors.
“AirAsia Philippines’ plan to go public is intriguing… It signals its ambition to expand and solidify its position in the regional markets,” Mr. Arce said in a Viber message on Wednesday.
However, Mr. Arce noted that it would be better for AirAsia Philippines to assess market sentiment before proceeding with the IPO.
“IPOs often generate interest during periods of market optimism. If investor sentiment around travel and leisure stocks remains high, it could draw substantial interest,” he said.
“For an AirAsia IPO to succeed, it would first need to establish a strong record and trajectory of profitability,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.
He added that investors would also want to see sustained growth in tourism and the economy to support the airline sector’s fundamentals.
“An IPO would be more viable when equity market conditions are more attractive. Given current circumstances, perhaps the earliest window for them to list is 2026,” Mr. Colet said.
