KUALA LUMPUR (Jan 22): Teleport Commerce Malaysia Sdn Bhd, the air logistics arm of Capital A Bhd (KL:CAPITALA), has raised US$50 million (RM202 million) in pre-initial public offering (IPO) growth capital to support its expansion ahead of a future listing.
The funding was raised through the signing of a subscription agreement with funds managed by American investment firm HPS Investment Partners, involving the issuance of redeemable convertible perpetual securities (RCPS), Teleport said in a statement on Thursday.
“This capital raise allows Teleport to strengthen its balance sheet and fund network growth with its key partner airlines, ahead of a future public listing," the statement read.
The company has raised in total about US$109 million since its inception in 2018, it added.
Teleport chief executive officer Pete Chareonwongsak said the investment would support the scaling of the company’s asset-light logistics model, particularly in high-growth cross-border e-commerce markets between China, the rest of Asia, Middle East and beyond.
Completion of the RCPS issuance is still subject to the fulfilment or waiver of conditions precedent set out in the subscription agreement, said Capital A.
BNP Paribas and Milbank acted as the financial adviser and legal counsel respectively to Teleport, while Latham & Watkins served as legal counsel to HPS Investment Partners.
Teleport is mainly an integrated e-commerce logistics specialist operating what it describes as the largest asset-light air network in Southeast Asia. The company has a presence across Malaysia, Singapore and Thailand, among others.
According to Teleport, the latest fundraising values the logistics company at US$500 million (RM2.03 billion) on a pre-money basis and is expected to accelerate the global expansion of its cross-border e-commerce logistics model.
“This updated valuation represents an unrealised return of over 100-fold for Capital A and positions Teleport well for a future IPO," Capital A chief executive officer Tan Sri Tony Fernandes said in the same statement.
Aside from Teleport, Capital A’s portfolio also includes Asia Digital Engineering Sdn Bhd, which provides maintenance, repair and overhaul services, as well as AirAsia MOVE, AirAsia NEXT and Santan.