BANGKOK: The Thai unit of Malaysia's AIRASIA BHD [], Asia's largest budget carrier by fleet size, said on Monday, March 7 it planned to raise up to $200 million from an initial public offering in Bangkok in the fourth quarter.
"We should raise about $150-200 million from the IPO and the proceeds will be used as cash reserve and to buy aircraft," Thai AirAsia Chief Executive Tassapon Bijleveld told reporters.
The Thai economy and tourism are continuing to recover and the budget carrier expected higher passenger numbers this year despite rising fuel costs as a result of higher crude oil prices.
"We saw signs of recovery in the fourth quarter when the number of tourists rose. Growth should continue this year and domestic politics is quite stable," Tassapon said.
Thai AirAsia has a policy of hedging 30 percent of its fuel needs to minimise the impact of oil price changes and it may raise its fuel surcharge to reflect rising oil prices, he said.
Thai AirAsia's registered capital will increase to 4 billion baht from 400 million baht after the IPO, Tassapon said.
At the end of 2010, Thai AirAsia had accumulated losses of about 4 billion baht and it planned to reduce them to 1 billion baht before launching the public share offer, and would then wipe it out altogether after the IPO, he said.
It aimed to generate cash flow of about 8-10 billion baht over the next five years, he said. - Reuters
"We should raise about $150-200 million from the IPO and the proceeds will be used as cash reserve and to buy aircraft," Thai AirAsia Chief Executive Tassapon Bijleveld told reporters.
The Thai economy and tourism are continuing to recover and the budget carrier expected higher passenger numbers this year despite rising fuel costs as a result of higher crude oil prices.
"We saw signs of recovery in the fourth quarter when the number of tourists rose. Growth should continue this year and domestic politics is quite stable," Tassapon said.
Thai AirAsia has a policy of hedging 30 percent of its fuel needs to minimise the impact of oil price changes and it may raise its fuel surcharge to reflect rising oil prices, he said.
Thai AirAsia's registered capital will increase to 4 billion baht from 400 million baht after the IPO, Tassapon said.
At the end of 2010, Thai AirAsia had accumulated losses of about 4 billion baht and it planned to reduce them to 1 billion baht before launching the public share offer, and would then wipe it out altogether after the IPO, he said.
It aimed to generate cash flow of about 8-10 billion baht over the next five years, he said. - Reuters
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