AirAsia looking at $600M valuation in IPO

Low-cost carrier AirAsia Philippines on Monday said it is likely to push through with its maiden offering later this year, with the company valuation seen at $600 million.

"Based on our [earnings before income tax, depreciation, and amortization] right now, we plan to put a valuation of about $600 million for the company," AirAsia vice chairman Michael Romero said in a press conference in Makati City.

According to Romero, the company still seeks to gain some $200 million from the planned initial public offering (IPO), which has already been deferred.

Romero said the company plans to do the IPO later this year, maybe within the fourth quarter, but did not give out any specifics.

AirAsia Group CEO Tony Fernandes last year said he was hoping that the company would go public in 2018, but that this was deferred due to risks in the aviation sector.

According to Romero, the latest financial results of the company indicate an improvement in margins, with revenues hitting near P7 billion in the first three months of the year.

"First-quarter revenues has hit a record high of P6.68 billion, and a profit of about P424 million. The company is now turning around and becoming very profitable," he explained.

The latest financial report of the company uploaded on its website showed that revenues grew by 27% to P6.678 billion in the first quarter from P5.274 billion the same period last year.

Meanwhile, profit after taxation grew 12% to P424.500 million from P379.882 million in the first quarter of 2018.

According to Romero, most of the business partners want the company to go public within the year, with the proceeds to be used for acquisition of new aircraft.

"Mostly aircraft acquisition and working capital. We plan to raise our airplanes to about 30 within two years time," he said.

Looking ahead, Romero said the company is looking at tapping the Citibank, N.A. Philippine Branch and BDO Unibank Inc. as underwriters for the IPO. — BM, GMA News