Bangkok--8 Mar--Thai AirAsia
Thai AirAsia, the local carrier and one of the integral partners of the highly successful, world's best low cost airline group AirAsia, today announced the appointment of the underwriters for its planned initial public offering (IPO).
In a statement released today, Thai AirAsia Company Limited announced the appointment of Credit Suisse Securities (Thailand) Ltd. , CIMB Securities (Thailand) Ltd. and Thanachart Securities Public Co.,Ltd. to act as their Joint Lead Underwriters. "The proceeds of this IPO will be used to further strengthen the Company's capital structure to a level appropriate to support our future operations, including the acquisition of additional aircraft. We are looking at raising at least USD150 Million from the offering. Following the strong performance in 2010, we are confident that this is the right time to access the capital markets for further expansion." says Tassapon Bijleveld, CEO of Thai AirAsia. The shares are expected to be listed and quoted on the Stock Exchange of Thailand before the end of this year.
The airline recorded a total revenue of THB12.4 billion in 2010, registering an increase of 33% compared to the previous year and a strong increase in profit after tax of THB2.846 billion. Load factor was at 78% with passenger volume growth of 16% over 2009. The airline carried a total of 5.8 million passengers last year, making it the largest low cost carrier in the country. Ancillary income has also contributed significantly to the airline's bottom line. Ancillary spending per passenger increased to THB310, recording 62% growth over last year.
"We will take more deliveries of brand-new A320 aircraft this year to add to our current fleet strength of 20 aircraft. We aim to grow to at least 40 aircraft in the medium term. We are confident that the IPO will help accelerate our growth", adds Thai AirAsia's CEO.
"As Thai AirAsia enters its 8th year of operations, we expect to carry 7 million passengers this year. We will be able to reap the benefits of our investment in our Indian sectors which we started flying in 2010, where we have seen a strong demand and great potential for growth. Also the Thai economy is expected to remain buoyant throughout 2011. There is further room for the market to expand as there is strong demand for travel in the Asia-Pacific region, hence it is the right time to proceed with the IPO", states Tassapon.
Tassapon concluded that, "We will continue to strengthen our connectivity among the destinations we fly to, and we will also increase our flight frequency to various destinations. Our goal is to strengthen both domestic and international travel with our 3 hubs in Thailand, namely Bangkok, Phuket and Chiang Mai. The task is on track and yielding excellent results. We are confident that our financial performance, combined with our vision and strategic plans, will certainly bring in the local and international investors".
For media enquiries, contact
Krittiyawadee Pongpanich
[email protected]
Nuttawut Jitardharn
[email protected]
Piyasuda Archasantisuk
[email protected]