KUALA LUMPUR: AirAsia X Bhd, the long-haul arm of AirAsia Group, plans to raise up to RM859.3 million through its initial public offering (IPO) for listing on the Main Board of Bursa Malaysia Securities.

The sum is on the assumed institutional and retail price of RM1.45.

AirAsia X, which is slated to be officially listed on July 10, 2013, plans to utilise about 33.3 per cent or RM285.809 million from the cash raised to repay bank borrowings within three months, while another 32.6 per cent (RM280 million) has been allocated for capital expenditure over 24 months.

Incorporated in 2006, the low-cost long-haul carrier also plans to use about RM255 million from the proceeds for general working capital.

AirAsia X's listing will be the largest IPO in Malaysia this year.

The AirAsia X IPO was jointly launched today by CIMB Group Chief Executive officer (CEO) Datuk Seri Nazir Razak, AirAsia Group CEO Tan Sri Tony Fernandes, AirAsia X Chairman Tan Sri Rafidah Aziz and CEO Azran Osman-Rani.

The IPO exercise consists of up to 790,123,500 ordinary shares of RM0.15 each in AirAsia X.

This comprises an offer for sale of up to 197,530,900 existing shares and a public issue of 592,592,600 new shares. -- BERNAMA