KUALA LUMPUR (March 30): Capital A Bhd (KL:CAPITALA), which has yet to exit its financially troubled Practice Note 17 (PN17) status, is eyeing a dual listing on the Stock Exchange of Hong Kong by August.
“So the Hong Kong [stock exchange] approached us. They saw Capital A as one of the great companies in Asean that they would like to list in Hong Kong. So again, I think the board has approved and we are going to work. We have appointed bankers. And that potentially could happen in July or August this year,” its chief executive officer Tan Sri Tony Fernandes told a press conference held at Ormond Hotel here.
He first mentioned the potential Hong Kong listing in May 2025.
Fernandes said the company will submit its audited financial statements for 2025 and its March 31, 2026 (1QFY2026) results to apply for its exit from PN17 status.
He added that the 1QFY2026 results fully exclude the aviation business, which was disposed of to sister company AirAsia X Bhd (KL:AAX) in December last year.
“I suspect they (Bursa Malaysia) would like to see the accounts audited. And we believe we will have our audited accounts by April 10,” said Fernandes. The 1QFY2026 results are only due out in May.
Earlier this month, a Maybank Investment Bank note flagged a delay in Capital A’s exit from its financially troubled status, and expects the lifting of its PN17 status in August from May/June previously.
It said although Capital A sold its aviation business in December 2025, it must show two consecutive profitable quarters to exit PN17 status. Maybank IB said the 4QFY2025 profits may not count, so the company may need to present its 1QFY2026 and 2QFY2026 profits instead.
Another firm, MBSB Research, said Capital A’s management is asking for a waiver to use past profits to speed up its exit from PN17 status.
Capital A’s disposal of its aviation business to AirAsia X has resulted in a positive equity position. The group has been in the black at the net profit level for four consecutive quarters since 1QFY2025. At the net operating level, Capital A has been profitable for eight quarters, Fernandes said.
He added that the group plans to first exit PN17 status before it can move forward with its plan to list its brand management company AirAsia Next in the US.
At the time of writing on Monday, Capital A’s shares were down 2.5 sen or 6.02% at 39 sen, valuing the group at RM1.72 billion.