January 14, 2022

AirAsia shares dropped after classification as PN17

 Oops down many.

AirAsia Group Bhd's share saw a decline of 55 cents after Bursa Malaysia dismissed its appeal from being classified as Practice Note 17 (PN17) company.

The counter opened 7 sen at 67.5 sen which saw a decrease of 19.5 sen or 26.17% to 55 sen.

In the filing of the Bursa, AirAsia saw sales under Propritari Daily Traders (PDT) and Short Sales (IDSS) for its shares had been suspended throughout the day following the final price for approved securities down more than 15 sen from the reference price.

In the meantime, AirAsia has applied to Bursa Malaysia Securities to extend the release period of more than 7 January but the firm rejected it.

According to Bursa's statement, after considering all the facts and written representations and documents submitted by AirAsia, the firm decided to reject the appeal.

As a record, AsiaAsia has sparked the suspension of PN17 in July 2020 following its external auditors, Ernst & Young PLT expressed an improper audit opinion with significant uncertainties relating to the ongoing efforts on its audited financial statements for the financial year ended 31 December 2019 (FY19) and its shareholders' equity on a basis consolidated 50% or less than its share capital.

In addition, AirAsia also sparked the criteria set according to paragraph 8.04 and paragraph 2.1 (a) of PN17, the main listing requirements of the Bursa which saw AirAsia shareholders 'equity on a consolidated basis of 25% or less than its shareholding and shareholders' equity less than RM40 million based on FY20 Audited Financial Statements.

Therefore, AirAsia is not classified as PN17 for a period of 18 months from the date of the first release announcement.