Kuala lumpur: AirAsia X Bhd's (AAX) shares experienced a notable increase in early trading, rising after the company announced it had fully secured its RM1 billion private placement at RM1.65 per share.

According to BERNAMA News Agency, the stock saw a rise of seven sen to RM1.79 at 10.10 am, with a trading volume of 1.78 million shares. This development comes on the heels of AAX's announcement on Tuesday, marking a significant advancement towards the formation of an expanded AirAsia group amid the company's aviation restructuring efforts.

The long-haul budget carrier has scheduled the completion of this transaction for January 19, 2026. On this date, the new shares are expected to be listed on Bursa Malaysia's Main Market. Previously, on April 25, 2024, AAX had revealed its intentions to acquire AirAsia Aviation Group and AirAsia Bhd for a total of RM6.8 billion, along with the proposed RM1 billion private placement.

Meanwhile, Capital A Bhd's CEO, Tan Sri Tony Fernandes, shared in a LinkedIn post that AAX is set to be renamed AirAsia and will be listed as a newly quoted stock on January 19. On the same day, Capital A plans to submit an application to be uplifted from PN17 status, with a final court hearing slated for January 21.

Public Investment Bank Bhd highlighted that AAX is optimistic about the performance of its fourth and first quarters, buoyed by the peak holiday season and positive forward bookings in its primary markets. The airline's fleet currently comprises 19 A330 aircraft, with 18 operational and the last one awaiting reactivation due to global maintenance and repair backlogs.

The impending merger of Capital A's aviation arm into AAX is nearing its conclusion, promising a more extensive and efficient aviation group with enhanced operational synergy. Public Investment Bank Bhd continues to support an 'Outperform' rating with an ex-all target price of RM2.15, adjusted for the private placement and the acquisition of AirAsia Aviation Group Ltd, based on projected earnings per share for the merged entity in the financial year 2026.