KUALA LUMPUR (Jan 6): Bursa Securities has rejected an applicaton by Capital A Bhd (KL:CAPITALA) for more time to complete the distribution of AirAsia X Bhd (KL:AAX) shares to its shareholders.

Despite the rejection, the group said in a bourse filing on Tuesday that it still plans to distribute the AAX shares concurrently with AAX’s upcoming private placement.

Meanwhile, Bursa has granted a separate application by AAX for an extension until Jan 19 to complete its proposed private placement, acquisition of AirAsia Aviation Group Ltd (AAAGL), and the granting of subscription options. 

Capital A was required to complete the distribution of AAX shares by Jan 2, 2026, a month after its entitlement date of Dec 3, 2025. Capital A sought to push this deadline to Jan 19 after AAX’s RM1 billion private placement faced documentation delays from identified investors.

Capital A explained that the original Dec 3 entitlement date was set under the assumption that AAX had sufficient time to complete its private placement by the year-end deadline of Dec 31, 2025.

“At the time of the announcement of the entitlement date, there was no indication suggesting that the identified investors would be unable to meet the deadlines set by AAX, and it was reasonable to expect that the AAX private placement would be completed within the approved timeframe — by Dec 31, 2025 — in line with AAX’s target completion date,” it said.

Capital A further clarified that setting the Dec 3 entitlement date was necessary for the group to submit an application to the High Court linked to its share capital reduction exercise. The quantum of the reduction can only be determined by reference to the closing price of AAX shares on that specific date, it said.

“As such, the application for the supplemental court order could not be made until the entitlement date has been announced. In this regard, the entitlement date on Dec 3, 2025, was carefully planned to provide sufficient buffer for Capital A to obtain the supplemental court order,” it added.

It intends to allot and issue the distribution shares as soon as they are allotted and issued, concurrently with the AAX private placement.

The share distribution and private placement are vital components of Capital A's regularisation plan to exit its PN17 status. Under the plan, AAX will acquire Capital A’s aviation businesses — AAAGL and AirAsia Bhd — for RM6.8 billion to consolidate all short- and medium-haul AirAsia carriers under a single listed entity. AAX’s RM1 billion private placement exercise is intended to fund the enlarged airline's operations.

Shares in Capital A ended two sen or 4.71% higher at 44.5 sen on Tuesday, valuing the group at RM1.97 billion. AAX closed two sen or 1.12% higher at RM1.80, giving the group a market capitalisation of RM804.73 million.

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Capital A seeks more time for AAX share distribution amid private placement delay