Capital A is eager to continue with its ‘Hollywood’ debut on the New York Stock Exchange, according to enthusiastic CEO Tony Fernandes. Traveloka is also eager to make an IPO debut in the US The New York Stock Exchange is definitely the place to be for Asian super apps.
Peden Doma Bhutia
Capital A, formerly known as the AirAsia Group, plans to go public on the New York Stock Exchange sometime next year.
Already a publicly traded company in Bursa Malaysia, Capital A can seek two stock exchange listings in the US — one for the airline and the other for the digital super app, CEO Tony Fernandes said.
AirAsia executives could not be reached for comment at the time of publication.
“If you want to be an actor, you probably want to end up in Hollywood at some point in your career,” Fernandes told the Financial Times.
While 2021 saw a record level of global IPOs, volatile market conditions led to a significant slowdown in the first quarter of 2022. For the first quarter of 2022, the global IPO market saw 321 deals that grossed $54.4 billion, down from respectively 37 percent and 51 percent year on year, according to Ernst & Young.
The super app collects all of the company’s offers and services, including flight and hotel bookings, food and grocery delivery, taxi transportation, parcel delivery, and more.
The AirAsia Group had considered marketing its digital arm through a dedicated acquisition company in the United States to raise at least $300 million. The group has also been approached by some SPACs.
Last year, however, the company had to go through a debt restructuring plan to avoid bankruptcy. Things are starting to look good for the company now and Fernandes is confident that the company will be profitable and cash flow positive by 2023.
With the company facing financial difficulties, customers received only 0.5 percent of refunds owed for flights canceled during Covid, with the rest given in the form of credit.
Last week, AirAsia Aviation Group airlines reaffirmed their commitment to resolve all refund requests as a result of the ongoing impact of the pandemic as soon as possible.
It claimed it has already completed more than 99 percent of all customer refund requests and would settle the rest in the coming months.
Capital A is also entering the electric vertical take-off and landing air taxi market. Fernandes visited Vertical Aerospace in Bristol last week.
“This will revolutionize travel and give the common man the opportunity to save time, create new tourism and logistics opportunities and create more jobs,” he said of the air taxi market.