Exclusive - Malaysia's AirAsia targets US$300 million raise via US listing of digital business

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Malaysia's low-cost airline AirAsia Group Bhd is considering a listing of its digital arm via a special-purpose acquisition company (SPAC) in the ...

Malaysia's low-cost airline AirAsia Group Bhd is considering a listing of its digital arm via a special-purpose acquisition company in the United States to raise at least US$300 million, its chief said on Wednesday.

Group Chief Executive Tony Fernandes told Reuters in a virtual interview that a few SPACs focused on technology have approached the group, and AirAsia has engaged auditors for a deal to list the unit, which comprises a travel and lifestyle services platform, logistics and fintech businesses.

Mergers and acquisition activity and SPAC deals have surged in Asia, with Southeast Asia's largest ride-hailing and food delivery firm Grab heading for a U.S. listing via a hefty US$40 billion merger with a SPAC. The deal values the AirAsia SuperApp division at around US$1 billion, more than the pandemic-hit airline's current market value of US$868 million at a time when it has been looking to raise more capital.

 

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