Affin Hwang maintains Sell on AirAsia X

KUALA LUMPUR: Affin Hwang Research has maintained its Sell call on AirAsia X (AAX) with a target price of 45 sen based on unchanged FY15 P/BV multiple of 1.3 times.

In a note on Wednesday, the research house said AAX has proposed to undertake a rights issue toraise up to RM395mil for working capital and to pare down borrowings.

Entitlement ratio and price has yet to be determined. 

Concurrently, AAX has also proposed to increase the authorised share capital from RM500mil of 3.33 billion shares to RM1bil comprising of 6.66b billion shares (par value of RM0.15). The warrants will have a tenure of five years.

The research house said the group had also appointed AirAsia director Kamarudin Meranunas group CEO, and named Benyamin Ismail, former head of corporate development and investor relations, as the airline’s acting CEO.