News - AirAsia : May exit AirAsia X | Petronas Dagangan : Eyes RM20m from e-pay tie-up

AirAsia Bhd (RM3.57/share)

May exit AirAsia X

AirAsia Bhd may consider exiting long-haul, low-cost carrier AirAsia X when the latter undertakes its IPO, which could be as early as the fourth quarter (Q4) of this year, according to AirAsia’s new chief executive officer Aireen Omar. Virgin Atlantic was disposing of its 10% stake in AirAsia X to existing shareholders Aero Ventures Sdn Bhd and AirAsia. With Virgin’s exit, AirAsia owns about 20% equity interest, while Japan-based Orix Group and Bahrain-based Manara Consortium holds another 20%. Aero Ventures, controlled by Tan Sri Tony Fernander, Datuk Kamaruddin Meranun and several prominent Malaysians, own the remaining 60% of AirAsia X.  Aireen said AirAsia will not be increasing their stake to more than the current 20% for sure. Aireen added that next year, AirAsia is scheduled to receive another four aircraft. 90% of the new capacity this year will be for existing routes, while the remaining 10% will be for new routes. – The Edge

Petronas Dagangan Bhd (RM21.06/share)

Eyes RM20m from e-pay tie-up

Petronas Dagangan Bhd (PDB) expects to rake in RM20.0mil from its partnership with payment service provider e-pay (M) Sdn Bhd this year. Already entering its 11th year of partnership, PDB retail business division senior general manager Akhbar Md Thayoob said e-pay’s electronic payment services have been bringing in good income for PDB since year one. He said last year, PDB made about RM19.0mil and this year, with their enlarged Petronas stations, they expect to see an increase to at least RM2.0mil. Petronas has 977 stations nationwide and more than 800 stations are being serviced by e-pay terminals. The e-pay services that can be obtained at Petronas stations include mobile reloads, online games top ups, event tickets and bill payments. By year-end, all Petronas stations will have e-pay terminals. Akhbar said by October, there will be more than 1,000 Petronas stations nationwide, adding that PDB has allocated a capital expenditure of RM200 million to build 74 new stations this year. – Business Times

Healthcare Sector

IHH sets IPO price at RM2.85 a share

According to IHH Healthcare Bhd’s announcement on Bursa Malaysia, the company has set a retail price of RM2.85 for its IPO as the company aims to go public on July 25. The company is also set for a dual-listing with the Singapore Stock Exchange and the retail price of the IPO is S$1.18 (RM2.95). IHH is majority-owned by government investment fund Khazanah Nasional Bhd with a 62.1% stake. The IPO is for 2.2 billion shares, comprising 1.8 billion new shares and an offer for sale of up to 434.65 million shares. The company already has 22 cornerstone investors, who have committed to buying 1.39 billion of 62% of the offering. – The Edge

Source: AmeSecurities