Capital A sets sights on Hong Kong listing
The company sees the exchange as a key platform to reach deeper pools of international and mainland Chinese investors
by RUPINDER SINGH
CAPITAL A Bhd is actively exploring a potential listing on the Hong Kong Stock Exchange (HKEX), a move aimed at widening access to global capital markets and positioning its diverse ecosystem of digital and aviation services for the next phase of expansion.
In a statement last Friday, it said that the initiative follows a recent senior-level meeting with HKEX representatives, during which Capital A was invited to consider a listing in Hong Kong.
The company sees the exchange as a key platform to reach deeper pools of international and mainland Chinese investors, who are increasingly drawn to ASEAN-led growth stories with strong China ties.
It noted that talks are progressing, with Capital A close to appointing an international investment bank to advise on the proposed listing structure and timeline.
The launch of the formal process remains subject to internal evaluations and regulatory approvals, it said.
'Capital A is proudly rooted in ASEAN but built for the world,' said Capital A CEO Tan Sri Tony Fernandes.
'With over 20 destinations across Greater China and significant business exposure in the region, we see Hong Kong as a natural capital markets gateway. A dual listing would allow us to tell our story on a global stage and connect with a broader investor base that values digital-first, asset-light business models,' he added.
Fernandes also highlighted the growing recognition of Capital A's non-airline businesses, including Teleport, Asia Digital Engineering (ADE) and AirAsia MOVE.
'Teleport, ADE, and our digital travel platform AirAsia MOVE have received great recognition and this is an exciting opportunity that aligns with our ambition to accelerate growth, attract new strategic investors, and maximise long-term shareholder value,' he added.
Capital A's portfolio includes ADE, a maintenance, repair and overhaul (MRO) provider serving airlines across the region; Teleport, a rapidly growing logistics network; and AirAsia MOVE, a digital travel and lifestyle platform that continues to gain traction.
Capital A said the prospective Hong Kong listing is viewed as a natural progression following Capital A's ongoing efforts to exit Practice Note 17 (PN17) status, with its regularisation plan on track for completion by mid-2025.
Once out of PN17, the group intends to pursue strategic initiatives to strengthen its capital structure and global reach.
Capital A said Hong Kong's deep capital markets, enhanced listing regime and strategic connectivity, with both global and Chinese investors make the HKEX an attractive destination for high-growth, internationally exposed Asean companies.
It added that the rising participation via Southbound Stock Connect and a more diversified investor base further reinforce Hong Kong's role as a gateway to global scale.
Audit Clarification on MUGC
In a separate Bursa Malaysia announce- ment last Friday, Capital A disclosed that its external auditor, Ernst & Young plt (EY), had issued an unqualified audit opinion for its financial year ended Dec 31, 2024, but with a para- graph on material uncertainty related to going concern (MUGC).
The MUGC highlights that as at the date of the audit report, certain milestones critical to Capital A's proposed disposals and restructuring plan remain outstanding. These include regulatory and lender approvals, and the successful completion of AirAsia X Bhd's RM1 billion private placement.
The auditor noted that if these conditions are not met within the stipulated time frame, the related share sale agreements would lapse, potentially impacting the group's ability to deconsolidate its aviation assets and restore financial stability.
Despite this, the auditors stressed that their opinion on the financial statements remains unqualified. The inclusion of the MUGC paragraph is a procedural requirement and does not indicate concern over the group's operational fundamentals.
The proposed disposals referenced in the audit include the sale of
Capital A's entire stakes in AirAsia Aviation Group Ltd and AirAsia Bhd to AirAsia X, for a combined consideration of RM6.8 billion. These disposals are central to Capital A's plan to restructure its balance sheet and exit PN17.
To Complete Restructuring by June
Building on its audited results, Capital A reiterated that it remains on track to complete its regularisation and restructuring plan by June 2025.
'While EY draws attention to the timing of our restructuring — particularly the RM1 billion placement for AirAsia X — this reflects the scale and significance of the plan, not any weakness in our fundamentals,' said Fernandes.
He stressed that the MUGC is a technical feature of audit protocol, not a verdict on business viability. 'We want to assure our shareholders that the inclusion of the MUGC paragraph is an audit requirement when certain milestones remain pending at the date of issuance of the audit report — even when they are well on track. It does not reflect any concern about the strength of our business. In fact, meaningful progress is being made across all fronts, and we remain confident in completing all components of our restructuring plan successfully.'
Its group CFO Mun Hui Teh added that discussions with auditors indicate the MUGC paragraph will be lifted once the remaining conditions — notably the completion of the RM1 billion placement and final regulatory approvals — are met.
'From a financial standpoint, we are seeing strong indicators of recovery. The first quarter of 2025 was particularly encouraging, and with investor confidence solidifying, we are focussed on delivering a clean exit from PN17 and positioning Capital A for long-term growth,' she said.
This article first appeared in The Malaysian Reserve weekly print edition
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