Capital A International to be publicly listed in the US following US$1.15b deal

Malaysia's Capital A has finalised a US$1.15 billion deal to list its management unit Capital A International (CAPI) in the United States (US) public markets. This follows a merger with a special purpose acquisition company (SPAC) called Aetherium Acquisition. 

The transaction will offer investors a gateway to participate in a fast-growing economic hub and allow CAPI to leverage on the expansion, management and licensing of the AirAsia brand. 

Under the terms of the proposed transaction, CAPI will combine with Aetherium and become a publicly traded entity. Although the boards of both CAPI and Aetherium have unanimously approved the transaction, the transaction remains subject to the approval of Aetherium stockholders and other customary closing conditions, said Capital A in a statement.

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Tony Fernandes, best known for acquiring AirAsia in 2001 and transforming it into a global airline, will lead CAPI, the statement added. 

"The evolution of the AirAsia brand has created a loyal global consumer base, positioning us favourably to expand our brand internationally through CAPI. This listing grants us access to the world's most extensive and liquid capital markets, enhancing the company's international credibility and presence while creating value for our shareholders," Fernandes said in a statement. 

In addition to the AirAsia brand, CAPI holds the intellectual property rights for 14 other renowned brands and over 224 trademarks spanning 23 countries. 

CAPI's platforms integrates brand strategy, creative marketing and intellectual property development to strategically position its brands and cultivate cultural significance among consumers.

The company intends to leverage the brand value of AirAsia through further licensing while implementing its successful strategy to propel and expedite the growth of its intellectual property portfolio.

"We are optimistic about the potential for our brand business to expand well beyond our origins, particularly in markets where intellectual property and brand value are highly esteemed by consumers and investors," said Fernandes. 

“The ASEAN region offers a thriving economic landscape with a 680 million population, surpassing the U.S. and closely trailing the European Union. Fueled by a growing middle-income population that is creating new consumer markets and economic opportunities, the region is poised for sustained growth."

Moreover, the recent surge in popularity of Asia-based media, entertainment, and lifestyle brands underscores the escalating global demand for brands originating in Asia, added Fernandes. 

“We’re thrilled to partner with Tony and the CAPI team to capitalise on their proven track record and extend the brand beyond the world’s fastest-growing consumer-driven market, boasting a population twice the size of the United States," said Jonathan Chan, chairman and CEO of Aetherium. 

"With over 22 years of innovation in air travel and digital services, the company is strategically positioned to strengthen its leadership in Asean and pursue growth in international markets. This collaboration presents a distinctive opportunity for U.S. capital market investors to participate in the rapid expansion of Asean economies through a company that embodies the region's diverse culture, energy, and emerging opportunities," explained Chan. 

This news comes after Capital A was reportedly looking to raise up to US$400 million in equity from a planned merger of its aviation business. 

In an interview with Reuters, group chief executive officer Tony Fernandes said that that would be on top of a US$200 million bond-raising the company is hoping to conduct in the new few weeks. 

In addition, Fernandes reportedly told Reuters in an interview that the acquisition by AirAsia X of Capital A aviation assets will be done by June and July.

He did not, however, provide details on what the financing would be used for. 

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