-- Capital A Berhad (KLSE: CAPITALA) saw its share price surge dramatically today, the first day of trading following a technical adjustment related to the distribution of AirAsia X (AAX) shares. The stock opened at an adjusted price of RM0.245 and skyrocketed to RM0.465, a nearly 90% jump, reflecting strong investor confidence in Capital A's new strategic direction.
The share price adjustment was a planned corporate exercise, concurrent with the ex-date for a dividend in specie, as part of Capital A’s strategic disposal of its aviation businesses. This move marks a pivotal moment for the company as it refocuses its energy and capital on its high-growth, asset-light digital and logistics ventures.
The market's powerful and immediate positive response appears to validate the company's thesis: that significant value exists within its non-aviation portfolio.
Tony Fernandes, CEO of Capital A said, “I am thrilled to see such a strong and immediate validation from the market. For a long time, we have been highlighting the immense, yet often overlooked, value embedded within our non-aviation portfolio. Today’s performance is a clear signal that investors are recognising the true potential of Capital A, separate from the aviation group.
“This isn't just a technical rally. It's the market acknowledging the fundamental strength and high-growth trajectory of our digital and logistics businesses. This enthusiastic response provides powerful momentum as we move forward with our strategic plans. It significantly strengthens our position for our upcoming capital-raising initiatives and serves as a robust vote of confidence as we prepare for a potential listing in Hong Kong, demonstrating a clear appetite for our growth story. We are more confident than ever that we are on the right path to unlock substantial, long-term shareholder value.”
Capital A is now positioned around five high-growth companies, all of which are already delivering robust financial performance:
- ADE (MRO): Optimising fleet performance and raising capital for new hangar and workshop expansion
- Teleport (Logistics): The 9th largest air cargo company in Asia, raising capital to accelerate network expansion
- AirAsia MOVE (OTA): A flight-first, social-led Online Travel Agent that has secured debt funding for future growth
- Santan (F&B): Evolving from an inflight caterer to a B2B food distributor, expanding beyond the airline
- AirAsia Next (Brand & Loyalty): An AI-powered branding and loyalty business exploring a potential listing to unlock the value of the 'AirAsia' brand
Collectively, these businesses have achieved a four-quarter profit streak, demonstrating their strength as real engines of growth. The strategic restructuring is also poised to significantly benefit Capital A’s balance sheet, with the transaction expected to result in the company’s equity turning positive.
**ENDS
Release ID: 89177535
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