AirAsia is planning initial public offerings (IPO) for its Indonesian and Thai affiliates. Chief executive Tony Fernandes hopes the money raised will fund his expansion ambitions. He also confirmed that the Malaysian airline was close to receiving regulatory approval to start a third subsidiary in the Philippines.
The Indonesian IPO is estimated to raise between US$150m and US$200m, although there was no estimate given for the Thai IPO. Fernandes admitted that the market turbulence caused by events in the Middle East could affect the success of the offering.
“We want to value this correctly and not overvalue it,” he said. “The aim is to get some cash into the business and realise the massive potential.”