AirAsia Faces De-Listing If Failure To Comply With Bursa’s Requirements

AirAsia Group Berhad has run its course in enjoying the extension granted by the market’s regulatory body during the pandemic. During that period, listed company’s were given relief from complying with obligations for a period of 18 months.

However, this has now ended, and with AirAsia now categorised as a PN17 listed entity, the company’s request for further extension in meeting its obligation has also been denied by Bursa Malaysia. As such, the requirements under PN17 of the Main LR will now apply to AirAsia with effect from 7 January 2022.

Among its obligation were, to regularise its condition within 12 months from the date, submit a regularisation plan to the Securities Commission Malaysia (“SC”) if the plan will result in a significant change in the business direction or policy of the Company or submit a regularisation plan to Bursa Securities if the plan will not result in a significant change in the business direction or policy of the Company.

Here’s the clincher, in the event AirAsia fails to comply with any part of its obligations to regularise its condition within the timeframes permitted by Bursa Securities, the Exchange could suspend the trading of the company’s listed securities on the 6th market day after the date of notification of suspension and de-list the company subject to it’s right to appeal against the de-listing.

With this latest development, AirAsia said it has started taking steps to address its PN17 status during the Relief Period. The company has undertaken a number of fund-raising exercises including the private placement of 369,846,852 ordinary shares, raising RM249 million, issuing another 100,367,362 ordinary shares, and raising RM86 million.

The renounceable rights issue of 7-year Redeemable Convertible Unsecured Islamic Debt Securities (“RCUIDS”) was completed end of December 2021, raising another RM974 million. Between 11 January 2022 and 13 January 2022, the number of RCUIDS that have been converted into new AAGB ordinary shares was 256,660,468 hence improving the shareholder’s equity of the Company by a corresponding amount.

AirAsia added that it is in the midst of formulating a plan to regularise its financial condition and the relevant announcement(s) on the same will be made in due course in accordance with the requirements of the Main LR.

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