AirAsia plans IPO in 2004

AirAsia plans IPO in 2004

KUALA LUMPUR: Malaysia's budget airline AirAsia, which will fly its first regional route Monday, plans to float some 25 percent of its shares in late 2004 to fund an ambitious expansion plan and fight off competition, a top official said.

The initial public offering (IPO) will be issued "as early as September 2004 and the quantum we are looking at is US$600 million to $1 billion," AirAsia executive director Kamarudin Meranun said on Sunday.

"We probably will float new shares but it will be as minimal as possible since the aim is only to put the company in a firm footing to meet expansion needs," Kamarudin said.

He said the funds from the IPO would be used to acquire new aircraft to meet AirAsia's expansion plans, which have been accelerated to keep the carrier ahead of potential competition from Indonesia's Lion Air and Thailand's Orient Thai -- also budget carriers.

"We are eying new joint ventures in Singapore, Indonesia and India and the funds will help us fly to new regional routes," he told AFP. -- AFP