Capital A Berhad, the parent company of low-cost Malaysian airline AirAsia, plans to list some of its businesses via a New York-based blank-cheque company in 2024, the Financial Times reported. CEO Tony Fernandes is reportedly entering into a deal with Aetherium Acquisition (GMFI), a special-purpose acquisition company (SPAC), to list certain businesses through it next year.
Fernanades’ Growth Plans
Fernandes is considering listing a new business that would extend the AirAsia brand to companies that intend to start airline franchises in developing countries like Bangladesh and the Maldives. The new entity, to be called Capital A International, will also include the company’s consulting division and aircraft leasing business.
Meanwhile, prior to the SPAC deal, Capital A Berhad expects to raise more than $1 billion in new equity and debt over the next few months. This potential fundraising includes a $150 million loan from Bangkok Bank, a plan to raise a loan of about $400 million through a revenue bond to be paid out of airline ticket sales, and ongoing discussions about raising $300 million in fresh equity in Q1 2024. Additionally, the group has executed separate fundraising deals worth $175 million for its logistics business Teleport, fintech “super app” Move, and Asia Digital Engineering business.
It is worth mentioning that Fernandes bought the Malaysian government-owned AirAsia in 2001 for just about $0.30. He aims to expand AirAsia’s presence in secondary and tertiary routes, particularly in countries like India, leveraging the anticipated resurgence in Asian tourism.
Capital A has been exploring fundraising options since the pandemic-related travel restrictions hit its business. In 2021, the Malaysian government classified it as a Practice Note 17 (PN17) or financially distressed company. Capital A is making efforts to exit this status.
