Malaysia's AirAsia X prices $310 mln IPO near bottom-source

KUALA LUMPUR/HONG KONG, June 21 Fri Jun 21, 2013 1:16am EDT

KUALA LUMPUR/HONG KONG, June 21 (Reuters) - Malaysia's long-haul budget carrier AirAsia X raised about $310 million in an initial public offering, pricing the deal near the bottom of expectations, a source with direct knowledge of the deal said on Friday.

AirAsia X, which competes with Singapore Airlines' Scoot, priced the IPO at 1.25 ringgit per share versus an indicative price range of 1.15-1.45 ringgit per share, added the source, who was not authorised to speak publicly on the matter.

AirAsia X and its shareholders offered 790.1 million shares, with about 75 percent of the offering coming from new shares, putting the total deal at 987.63 million ringgit ($309 million).

The deal follows the debut this week by Thai budget carrier Nok Airlines, which soared as much as 12 percent in its first trading day before losing most of the gains to end up 1.9 percent. Budget carriers have been in demand recently as investors look for proxies linked to Southeast Asia's rapidly expanding aviation sector.

AirAsia X plans to use 33.3 percent of the proceeds to repay bank loans with another 32.6 percent set for capital expenditures and 29.7 percent as general working capital.

CIMB, Credit Suisse and Maybank were hired as joint global coordinators on the IPO. Barclays, BNP Paribas, Citigroup, CLSA, HSBC and Morgan Stanley are also acting as joint bookrunners.

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