AirAsia’s co-founder, Tony Fernandes, announced that AirAsia Next, the airline’s branding unit, is nearing a backdoor listing on the Nasdaq. The deal, expected later this year, would value the newly created entity at approximately $US1.5 billion.
Fernandes stated that the transaction, involving a merger with a US-listed company, is anticipated to be revealed within the next two months. The merged entity is projected to commence trading in the third quarter. This development resurrects a plan Fernandes discussed two years ago, which faced obstacles related to Nasdaq’s listing requirements.
A successful listing for Next would represent Fernandes’ initial venture outside of Malaysia, following his consolidation of airline businesses under a single entity. Fernandes has stated his objective to list all non-aviation businesses under the holding company, Capital A Bhd, in the coming years. Capital A is an investment holding company with a portfolio that includes travel, fintech, and aviation services. AirAsia is a low-cost airline that provides affordable air travel throughout Asia.
Fernandes, 61, also mentioned that he is currently negotiating a five-year contract extension for his roles as CEO of Capital A and as advisor of its sister company, AirAsia X Bhd. He believes the AirAsia brand is strong, with potential for other airlines, especially within the ASEAN region, to leverage its expertise and name recognition.
