KUALA LUMPUR (Jan 13): Capital A Bhd (KL:CAPITALA) said the distribution of AirAsia X Bhd (KL:AAX) shares to its shareholders is expected to take place this Friday (Jan 16), paving the way for the company to submit its application for Practice Note 17 (PN17) upliftment.
The move will follow the completion of AirAsia X’s RM1 billion private placement, the low-cost long-haul carrier said in a statement on Tuesday. The enlarged share base is expected to be listed on the Main Market of Bursa Malaysia the following Monday (Jan 19).
"In line with that, Capital A intends to submit its application for PN17 upliftment on Jan 19, with the final court hearing scheduled for Jan 21," the company said.
The share distribution and private placement are key components of Capital A’s regularisation plan to exit PN17 status. Under the plan, AirAsia X will acquire Capital A’s aviation businesses — AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd — for RM6.8 billion, consolidating all short- and medium-haul AirAsia carriers under a single listed entity. The RM1 billion private placement is intended to fund the enlarged airline’s operations.
Last Tuesday, Bursa Securities rejected Capital A’s application for more time to complete the distribution of AirAsia X shares, which was originally due by Jan 2, 2026, a month after the entitlement date of Dec 3, 2025. Capital A had sought to extend the deadline to Jan 19 following documentation delays in the private placement.
On the flip side, the bourse approved a separate AirAsia X application for an extension until Jan 19 to complete its private placement, acquisition of AAAGL, and the granting of subscription options.
Bursa Malaysia’s decision led Capital A to clarify that the share distribution depends on the completion of the private placement, as the new AirAsia X shares must be issued before distribution to shareholders. It explained that its overall strategy remains unchanged with only a slight adjustment to the completion timeline.
Capital A chief executive officer Tan Sri Tony Fernandes said in the statement that the past six years required “fundamental change and difficult decisions”, but added that the work is now largely complete. “These are the final few steps — we will soon be able to put this chapter behind us and move forward from a far stronger foundation,” he said.
With restructuring nearing completion, Capital A plans to step up engagement with analysts and investors, including a series of domestic and international roadshows to outline its post-restructuring vision across five core businesses: maintenance, repair and overhaul, logistics, online travel agent, food and beverage, and branding.
The group also intends to host an Investor Day after the fourth-quarter close, based on unaudited 2025 results, to provide deeper insight into its business segments, financial priorities, and long-term value-creation plans, Fernandes noted.