AirAsia X has secured a 1bn Malaysian ringgit ($247 million) private placement at 1.65 ringgits per share today (January 13).
The placement was fully subscribed by a “broad mix” of institutional and private investors. The company said this reflects “strong support” as it enters the final stage of its aviation restructuring.
The group added that is finalising an additional aircraft to optimise its fleet planning. The new airline group is also exploring the development of a hub in Bahrain, which is “inspired by the connectivity models of leading Middle East carriers”.
AirAsia X is becoming the consolidated airline entity as Capital A Berhad undergoes PN17 restructuring — Malaysia's distressed status. Capital A has been restructuring its business post-COVID following financial difficulties during the pandemic. As part of this, the company is divesting its aviation businesses, which are being transferred into AirAsia X, consolidating the aviation operations under a single airline entity. In turn, Capital A will focus on its non-aviation businesses.
AirAsia X said today's placement marks a “key step” towards the enlarged aviation group. The transaction is expected to be completed on January 19, with the new shares to be listed on the Bursa Malaysia stock exchange on the same day.
“We are incredibly pleased to see such robust support from the investor community, which serves as a clear demonstration of confidence in the world’s best low-cost airline," said AirAsia X chairman Dato Fam Lee Ee. "This capital injection is not just about the present; it fuels our growth trajectory as we work towards becoming the world’s first low-cost network carrier.”
The company added: “With a significantly strengthened balance sheet and renewed investor backing, the enlarged AirAsia Group will now focus on refinancing its existing debt to secure lower interest costs and enhance long-term profitability and cash flow."
The single group structure is also expected to “unlock operational and financial efficiencies” such as improved fleet utilisation and more integrated network planning, as well as diversified revenue opportunities and lower operating costs through scale, shared capabilities, and ancillary offerings.
As part of Capital A's divestment of its aviation businesses, Capital A shareholders are set to receive AirAsia X shares. For every 1,000 Capital A shares, shareholders will receive around 389 AirAsia X shares once complete.
Capital A said today that this distribution is “imminent", with it taking place following the completion of AirAsia X's private placement on January 19.
“In line with that, Capital A intends to submit its application for PN17 upliftment on January 19, 2026, with the final court hearing scheduled for 21 January 2026,” Capital A said.
“The past six years have required fundamental change and difficult decisions,” said Capital A CEO Tony Fernandes. “That work is now largely complete. These are the final few steps - we will soon be able to put this chapter behind us and move forward from a far stronger foundation.”
Capital A said it plans to “step up” engagement with analysts and investors, with it planning various international and domestic roadshows over the coming months. After its aviation business' departure, the company will focus on five core businesses: MRO, logistics, online travel agency, food and beverage, and branding.