Malaysian low-cost carrier AirAsia Berhad plans to put shares of its Philippine and Indonesian operations on initial public offering (IPO), according to the group’s top official.
“We can confirm today that AirAsia Indonesia and AirAsia Philippines will be (opened for) IPO. (This is) subject to respective board approvals,” Tan Sri Anthony Francis “Tony” Fernandes, AirAsia Berhad group chief executive officer, announced April 13 on his Twitter account.
Fenandes said both the Philippine and Indonesian operations are “doing really well” and “with great support from both governments,” but provided no other details about the proposed IPO.
If the IPO happens, AirAsia Philippines will be the third airline in the country with shares to be traded on the Philippine Stock Exchange, aside from flag carrier Philippine Airlines and budget carrier Cebu Pacific Air.
AirAsia Inc., the Philippine unit, is 60% owned by Filipino shareholders, who include chief executive officer Marianne Hontiveros, Antonio Cojuangco Jr., Dr. Michael Romero, and Ambassador Alfredo Yao. The remaining 40% is owned by AirAsia Berhad through its wholly owned subsidiary, AirAsia International Inc.
AirAsia is the largest low-cost carrier in Southeast Asia and the third largest in the Philippines. Its two local units, AirAsia Philippines and AirAsia Zest, have a combined fleet of 18 aircraft servicing domestic destinations such as Kalibo, Puerto Princesa, Tagbilaran, Cebu, and Tacloban, and international destinations like China and Korea.
AirAsia Philippines is in the final stage of completing its full acquisition of ZestAir, which it bought from Yao in 2013 and rebranded as AirAsia Zest.
