Business

Saturday November 21, 2009

AirAsia plans listings in Thailand, Indonesia

By B.K. SIDHU


PETALING JAYA: Listing of its shares on Thailand and Indonesian stock exchanges is on the cards for Asia’s largest low-cost carrier AirAsia Bhd.

The airline is following in the footsteps of CIMB Group Holdings Bhd which recently said it was seeking a dual listing in Thailand.

AirAsia’s intention was widely reported by foreign news agencies yesterday.

AirAsia group chief executive officer Datuk Seri Tony Fernandes had said the timing was very good for a dual listing as AirAsia’s associate companies – Thai AirAsia and Indonesia AirAsia – were doing very well operationally.

The dual listing would give exposure of its shares to investors in these two countries as AirAsia has a vision to become a truly Asean carrier.

An analyst said in his research report that the dual listing of AirAsia should not have an impact on its operations but could raise the group’s profile in the countries it currently operated.

AirAsia shares were down marginally by 4 sen in yesterday’s trading and closed at RM1.28.

Bloomberg quoted Fernandes as saying that the plan to list in Thailand “is the first step before listing in Indonesia as well.”

Earlier this month, the stock exchange in Thailand agreed to allow foreign companies to list from Dec 1. CIMB was the first to announce that it was seeking a dual listing for the bank in Thailand to take advantage of the new rule.

Incidentally, AirAsia has appointed CIMB Investment Bank Bhd lead arranger for the Thai listing. Fernandes could not say when the shares would be listed on the Thai stock exchange.

“Asean is moving towards a closer economic integration,” Patareeya Benjapolchai, president of Stock Exchange of Thailand, said in an interview with Bloomberg. The rule change “will encourage companies in the region to have their shares traded in other stock exchanges than their home countries.”

The report also quoted Vichate Tantiwanich, the exchange’s chief marketing officer for new issues, as saying that the “airline hasn’t yet contacted the Thai bourse about a potential listing.”

“AirAsia is among our target companies because of its strong brand in the region and large business in Thailand,” he added.


AIRASIA : [Stock Watch] [News]

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