The Philippine unit of AirAsia is postponing its initial public offering (IPO) to next year or 2021 as it focuses on corporate reorganization and seeking funds from existing shareholders, Reuters reports.
“According to our estimated timeline, we are looking at the third quarter next year to first quarter of 2021,” Philippines AirAsia Chairman Joseph Omar Castillo was quoted as saying on Wednesday.
The low-cost airline has been looking to go public and raise around US$200 million since 2015, but has shelved its plan several times because of weak markets and volatile oil prices, the report noted.
A major consideration in the deal timing would be good performance of the stock market, Castillo said.
The company is being restructured after Filipino lawmaker Michael Romero bought out some investors in June to become the airline’s single largest stockholder.
The budget carrier plans to raise cash through common and preferred shares.
Philippines AirAsia was looking at a US$600 million valuation and had planned to raise US$200 million this year to buy aircraft acquisition and expand its routes.
It aims to grow revenues by 39 percent to a record 29 billion pesos (US$560 million) by carrying 10 million passengers this year, said Philippines AirAsia vice chairman Shiela Romero.
The airline, which started its Philippine operations in 2012, has a fleet of 23 Airbus aircraft catering to Philippine and foreign routes.
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