Fly me to the moon.
AirAsia Group Bhd will issue 2 of the 6 rights of unsecured redeemable or convertible Islamic debt securities (RCUIDS) with free warrants which will go live on 1 December.
The RCUIDS rights issue will be issued from December 3 to December 10 with December 6 as the issue date and subscription results will be announced on December 24. The local low -cost carrier also set the exercise price of its free detachable warrants at RM1.02 each.
For the record on July 12, AirAsia had planned to issue RCUIDS rights with free warrants based on 2 RCUIDS and 1 warrant for every 6 AirAsia shareholdings to generate RM1.02 billion.
Each of these RCUIDS is priced at 75 sen per unit for a period of 7 years with an annual profit rate of 8%. Each RCUIDS can also be converted into one new AirAsia share.
AirAsia said it was seeking an unconditional and irrevocable written commitment for full subscriptions from Tan Sri Tony Fernandes and Datuk Kamarudin Meranun as well as their vehicle investments namely Tune Live Sdn Bhd and Tune Air Sdn Bhd.
AirAsia also plans to arrange underwriting for the remaining 50% of the unused portion of RCUIDS by those worth RM615.89 million from the proposed fundraiser.
The holder of RCUIDS reserves the right to surrender the nominal value of RCUIDS or the outstanding amount to be converted into AirAsia shares at any time during the conversion period at the conversion price.
Meanwhile, AirAsia shares increased 1 sen or 0.89% to RM1.13 with a market capitalization of RM4.4 billion while the counter gained 27.68% this year.
