Capital A Bhd said on Friday it has received approval from Bursa Malaysia for its proposed regularisation plan. The plan, which includes a capital reduction exercise, is crucial for the lifting of its Practice Note 17 (PN17) status.
KUALA LUMPUR (Mar 7): Capital A Bhd (KL:CAPITALA) has received approval from Bursa Malaysia for its proposed regularisation plan, a crucial step towards lifting its Practice Note 17 (PN17) status.
In a bourse filing on Friday, the low-cost carrier’s adviser RHB Investment Bank Bhd announced that Bursa Securities had, via a letter dated March 7, 2025, given the green light to the proposed plan, which includes a capital reduction exercise.
The approval is subject to several conditions, including full compliance with the listing requirements during implementation, securing all necessary approvals from relevant authorities, and obtaining shareholder approval at a general meeting.
Capital A and RHB Investment Bank must also inform Bursa Securities upon completing the regularisation plan and provide written confirmation of compliance with all approval terms.
The regularisation plan, which was submitted to the authorities on Dec 23 last year, is part of Capital A’s ongoing efforts to address its financial distress and rebuild investor confidence.
The plan includes a share capital reduction of up to RM6 billion to reduce the company's accumulated losses and the reorganisation of its business units.
After the completion of the proposed corporate exercise, the group will diversify from being just a low-cost carrier to a diversified ecosystem of aviation and digital services.
Chief executive officer Tan Sri Tony Fernandes was previously quoted as saying that the group is expected to exit the PN17 status by the first quarter of 2025.
"This is a monumental day for Capital A. I am beyond words. After an extensive restructuring process, we now stand at the threshold of exiting PN17 status," Fernandes said in a separate statement on Friday.
"We are fully committed to executing the plan and delivering even greater value to all our stakeholders, including our customers and our incredible Allstars who never gave up. The best is yet to come!”
The airline group slipped into PN17 status in January 2022, which was then known as AirAsia Group Bhd, after its external auditors Ernst & Young PLT raised material concerns about the airline’s ability to continue as a going concern in its audited financial statements for the financial year ended Dec 31, 2019, with shareholders’ equity falling below 50% of its share capital.
The company said it remains committed to growing its six core businesses — Asia Digital Engineering, Teleport, AirAsia MOVE, Santan, BigPay and Abc International.
Shares of Capital A closed down half a sen or 0.61% at 82 sen on Friday, giving the company a market capitalisation of RM3.55 billion.
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