Capital A, Owner of AirAsia, Considers Hong Kong Stock Exchange Listing

Capital A, the Malaysian company that owns the budget airline AirAsia, announced on Friday that it is exploring a listing on the Hong Kong stock exchange. This move is aimed at broadening its reach to global markets.

The company faced significant challenges due to travel restrictions during the pandemic, leading to its classification as financially distressed by the Malaysian stock exchange in 2022.

After experiencing losses in fiscal year 2024, Capital A anticipates a return to profitability this year.

In early March, Capital A Group CEO Tony Fernandes stated that the company’s shareholders must approve a plan to reverse its financially distressed status, and the High Court of Malaysia must approve the company’s proposed capital reduction. The company aims to have this status revoked by mid-2025, with a shareholder meeting scheduled for May 7. Capital A’s shares increased by 5.7% to 0.84 ringgit per share, reaching a nearly two-month high by 0451 GMT.

In a separate announcement, Capital A reaffirmed its confidence in finalizing its proposed regularization and restructuring plan by June 2025.

Capital A stated that a potential listing in Hong Kong represents the “natural next step” and would enable the company to access a larger pool of investors from around the world and Mainland China.

This plan emerges as Hong Kong’s equity capital markets show signs of recovery after a period of relative inactivity over the past two years.

Hong Kong’s equity capital markets have been slow in recent years because of delays in the approval process by Chinese regulators and volatility in global financial markets.

The company mentioned that discussions are currently in progress, and Capital A is nearing the selection of an international investment bank to advise on the proposed listing structure and timeline. However, further details were not disclosed.

The company clarified that the initiation of the formal process is contingent upon internal assessments and regulatory approvals.