KUALA LUMPUR (Jan 23): Capital A Bhd (KL:CAPITALA) said it has officially completed its Practice Note 17 (PN17) regularisation plan, following the lodgement of the sealed High Court order confirming a RM5.51 billion capital reduction with the Registrar of Companies.
The lodgement on Friday (Jan 23) marks the final step of a massive restructuring that saw the group dispose of its aviation businesses, AirAsia Bhd and AirAsia Aviation Group Ltd, to AirAsia X Bhd (KL:AAX), which was completed on Jan 16.
The exercise also included the listing and distribution of AAX shares to entitled Capital A shareholders on Jan 19, and earlier High Court approval of the capital reduction on Jan 21.
Capital A chief executive officer Tan Sri Tony Fernandes described the completion as a turning point for the group.
“I’m thrilled to share that we’ve finished every step in our PN17 regularisation plan, and are now working towards the uplift. It’s a powerful moment after a long journey from the dark days of Covid,” he said in a statement. “I’m very proud of the team who rebuilt this business together, and also grateful to our partners and guests who have stood by us.”
He added that Capital A’s shareholders’ funds will turn positive upon completion of the exercise, meaning all PN17 criteria have been addressed pending Bursa Malaysia’s approval for upliftment.
As part of the regularisation plan, the group consolidated all of its short- and medium-haul airline operations into AAX, with Capital A shifting its focus entirely to its non-aviation businesses.
AAX had issued 2.31 billion new shares to settle the acquisition consideration for AirAsia Aviation Group Ltd, alongside assuming RM3.8 billion in debts owed by Capital A to AirAsia Bhd under a debt settlement arrangement.
The broader regularisation plan also involved AAX’s RM1 billion private placement, which was fully subscribed, with both the placement shares and distribution shares listed on the Main Market on Jan 19.
Post-regularisation, Capital A will operate around five core units: Asia Digital Engineering, which provides maintenance, repair and overhaul services; Teleport, its logistics arm; AirAsia Move, the group’s travel platform; AirAsia Next, which houses its brand and intellectual property business; and Santan, its food and beverage venture.
According to Fernandes, the group’s non-aviation businesses have delivered four consecutive quarters of profitability from the fourth quarter of 2024 to the third quarter of 2025.
He highlighted Teleport’s recent US$50 million pre-IPO fundraising at a US$500 million valuation as evidence of strong momentum.
“... we have addressed all PN17 criteria. I am truly excited to unlock all the potential of Capital A in our next journey from here,” he added.
Capital A shares closed up 2.5 sen or 4.81% at 54.5 sen on Friday, for a market capitalisation of RM2.42 billion.
According to Bloomberg, the stock currently has four "buy" calls, three "hold" calls and one "sell" call, with a 12-month consensus target price of 45 sen.