Fundraising critical for airline recovery strategy, digital transformation 

KUALA LUMPUR, 12 July 2021 - As it readies to take to the skies again and with its digital transformation entering the next phase, including the acquisition of Gojek Thailand’s operations, AirAsia Group Berhad (AAGB) today announces a proposed renounceable rights issue to its existing shareholders, to raise up to RM1 billion as part of the overall Group fundraising strategy. 

The Proposed Rights Issue entails the issuance of 7-year Redeemable Convertible Unsecured Islamic Debt Securities (“RCUIDS”) with a nominal value of RM0.75 each, plus free detachable warrants on the basis of 2 RCUIDS with 1 warrant for every 6 AAGB shares held. As a key component of AAGB’s fund-raising initiatives, the Proposed Rights Issue will enable AAGB to raise funds supporting various segments of the Group, including but not limited to, working capital and other operational costs due to the outbreak of the global Covid-19 pandemic, balanced with funding growth of the various airasia digital business units. 

CEO of airasia Group Tan Sri Tony Fernandes said: “Fundraising is a critical component of our recovery strategy. The timing is right, as vaccines are being rolled out aggressively in all of our key markets, alongside better education and testing. 

“There is light at the end of this long tunnel. The exercise will provide a platform to seek a fresh funding injection from shareholders to maintain liquidity during the downtime in flying and fuel growth of the key non airline digital businesses, ahead of the expected resumption of global air travel, in 3Q2021/1Q2022.

“While the airline will continue to underpin all operations, over the past 18 months, our digital transformation strategy has been gaining strong momentum with significant improvements across all key metrics for our airasia Super App, logistics and e-commerce venture Teleport and our for BigPay fintech business. Last week our Super App was estimated to be valued at over USD 1 billion which is a strong testament to the strategy we have put in place to become much more than just an airline - now a digital lifestyle company anchored on travel.”

The Company confirms it is also well progressed in discussions to secure a number of other fundraising initiatives that will not only ensure a sustainable and viable business for the short haul, but a stronger and more resilient operation for the future.

The Proposed Rights Issue is expected to be completed in the 4th quarter of 2021.