AirAsia shares fail to meet indicated IPO price

Airline Industry Information, Oct 29, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Malaysian low cost airline AirAsia's initial public offering (IPO) has failed to secure top prices after many fund managers balked at the high price of shares.

The airline was looking to raise USD226m from the IPO and had issued a retail investor price of MYR1.40 and an institutional investor price of MYR1.50. According to market sources however many institutional bids have come in below the MYR1.40 mark with the airline set to set the final pricing for both retail and institutional investors on 29 October 2004.

According to market sources retail investors will be due a refund because of the institutional bids. AirAsia is set to be listed on the Malaysian stock exchange in November 2004, reports Reuters.

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