KUALA LUMPUR, Shares in Capital A Bhd retreated on Friday, ending a four-day winning streak after touching a 10-month high, as investors took profit amid the group’s ongoing efforts to finalise its regularisation plan and exit from Practice Note 17 (PN17) status.
The counter slipped as much as 3% to 98 sen in early trading before edging up slightly to 99 sen at the midday break, still 2% lower for the day. Over 14 million shares changed hands, giving the company a market capitalisation of about RM4.3 billion.
The pullback followed Thursday’s statement from Capital A’s chief executive officer Tan Sri Tony Fernandes, who said the group expects to complete its PN17 regularisation by December, after satisfying or obtaining waivers for all remaining conditions tied to its aviation restructuring.
Under its regularisation plan, unveiled in April 2024, Capital A will divest its short-haul aviation assets — AirAsia Aviation Group Ltd and AirAsia Bhd — to AirAsia X Bhd for RM6.8 billion. The move will consolidate all short- and medium-haul AirAsia carriers under a single listed entity, streamlining the group’s airline operations.
Capital A and AAX have since overcome a key hurdle in the restructuring after AAX and its Thai partner agreed to buy out minority shareholders in Asia Aviation PCL, which operates Thai AirAsia, rather than seeking a regulatory waiver.
In addition, AAX plans to raise RM1 billion through a private placement to support the expanded airline group’s operations, with investor details expected to be announced soon, Fernandes said.
According to Bloomberg data, Capital A has four “hold” ratings and one “buy” recommendation from analysts, with a 12-month consensus target price of RM1.12, unchanged after the update.
The latest developments mark a crucial step for Capital A, which has been working to exit PN17 status since early 2022 following pandemic-driven losses that triggered the classification.
