Tuesday, 23 Feb 2021 01:55 PM MYTAirAsia Group Berhad's stocks up Hong Kong tycoon Stanley Choi increased his stakes in the Malaysian low-cost carrier. — AFP picKUALA LUMPUR, Feb 23 — AirAsia Group Berhad's share price rose this morning after real-estate magnate Stanley Choi increased his equity in the Malaysian low-cost carrier.reported the increase to be 13.5 sen or 16.56 per cent to 95 sen, and by 11.15am the counter pared some gains at 91.5 sen, still up 10 sen or 12.27 per cent.
Yesterday Choi, a renowned poker player in Hong Kong, pumped in RM114.46 million to take up AirAsia’s private placement. AirAsia also proposed a private placement of up to 669.4 million new shares, which is equivalent to 20 per cent of its previous share base at an indicative issue price of 68 sen per share, as it plans to raise RM454 million from the exercise which is to be set aside as working capital.
“Consequently we reduced our fair value by six per cent to 62 sen, from 66 sen, for AirAsia based on 10 times revised FY22 forecast EPS. “Assuming the deal is to be completed, we estimate the new shares will further dilute its FY22 forecast EPS by another five per cent, and reduce our fair value to RM0.59 based on the same valuation basis,” it said.