News Highlights - AirAsia, SP Setia, Telekom Malaysia, Construction Sector

AirAsia Bhd (RM3.60/share)

AirAsia X to launch IPO by early 2013

AirAsia X, the long-haul affiliate of budget carrier AirAsia Bhd, plans to launch its initial public offering (IPO) by the end of this year or early 2013 to fund its expansion, said chief executive officer Azran Osman-Rani. The low-cost carrier, which disclosed plans to list shares a year ago, said it wasn’t looking at any acquisition target and planned to grow the company organically. He added that the company aimed to add 14 new aircraft to its current fleet size of 11 aircraft by the end of 2014. – StarBiz

SP Setia Bhd (RM3.71/share)

Viet project cancelled

SP Setia Bhd’s told Bursa Malaysia in a filing yesterday that its proposed 32ha property development project in Vietnam has been cancelled. It said that the condition precedent (CP) set out in the cooperation agreement between Setia Saigon East Ltd and Saigon Hi-Tech Park Development Co were not met by yesterday, which was the expiry date of an already extended CP fulfilment period. The termination is mutual, SP Setia said, but added that the group is still positive on the property development prospects in Vietnam.  – Business Times

Telekom Malaysia Bhd (RM5.69/share)

Confident of attracting 500,000 SMEs by year-end

Telekom Malaysia Bhd (TM) expects its small- and medium-sized enterprises (SMEs) customers to reach more than half a million by the end of the year as it broadens its ICT solutions business. TM SME executive vice-president Azizi Hadi said TM had 494,000 SME customers subscribing to a wide range of TM solutions and products as of now. He said up until May, TM had secured contracts worth RM58.0mil, of which 90% came from its existing customers upgrading their ICT solution subscription. – Business Times

Construction Sector

DanaInfra to finalise MRT project cost by Q1

DanaInfra Nasional Bhd, the government-backed special funding vehicle, will know how much more funds to raise to finance the first phase of the MY Rapid Transit (MRT) project by the end of the first quarter of next year. It has been estimated that around RM30.0bil worth of funds will have to be sourced to finance the Sungai Buloh-Kajang line, the first phase of the MRT project. Project owner Mass Rapid Transit Corp Sdn Bhd (MRT Corp) has said the final cost of the Sungai Buloh-Kajang line, will be determined by the end of this year when all the packages are awarded. MRT Corp has awarded 33 packages worth RM15.5bil for the Sungai Buloh-Kajang line. It will award the rest of the total 85 packages for the first phase by year-end. The estimated financing required by DanaInfra to partly finance the first phase of the MRT project up to June 30 2013 is RM8.0bil. – Business Times

Source: AmeSecurities