SEPANG: Maintenance, repair, and overhaul (MRO) service provider Asia Digital Engineering Sdn Bhd (ADE) is gearing up for a potential listing, buoyed by a significant rise in revenue that is expected to continue into the next year. This financial strength places the company in a favorable position to consider an initial public offering (IPO) sooner rather than later.
According to BERNAMA News Agency, the company’s CEO, Mahesh Kumar, expressed optimism about the future, citing an ongoing high demand for aircraft maintenance services that surpasses current supply levels. ADE reported a 12% year-on-year increase in third-quarter revenue, reaching RM184 million, following strong earnings in the first two quarters. The growth was primarily driven by increased revenue from engineering maintenance services, supported by expanded capacity and geographic coverage.
ADE, a subsidiary of Capital A, which also owns AirAsia, is optimistic about future financial results, driven by the thriving MRO business in Southeast As
ia, strategic acquisitions, and continued infrastructure expansion. The company is also on a clear path to becoming a leading MRO service provider in the region, potentially making it a top contender for listing within the Capital A group.
Mahesh Kumar highlighted that while no specific timeline for the listing has been set, the company remains optimistic about its growth prospects. He emphasized that ADE is profitable, meeting revenue targets and maintaining expected margins, with projections for the upcoming year appearing even stronger.
The recent opening of ADE’s 14-line hangar at Kuala Lumpur International Airport (KLIA) marks a significant milestone. This 20.25-acre facility, located within the KLIA Aeronautical Support Zone 1, is the largest hangar in the country and is part of Malaysia Airports’ KLIA Aeropolis development. During its launch, Capital A CEO Tan Sri Tony Fernandes noted that ADE could potentially rival the value of the group’s low-cost airline AirAsia Bhd.
In addition to expanding its
facilities, ADE is actively pursuing strategic mergers and acquisitions to broaden its footprint across the ASEAN region. The company recently entered the Indonesian market by investing jointly with PT Garuda Maintenance Facility Aero Asia Tbk (GMF) for landing gear services, acquiring a 49% stake in the entity. This acquisition, Mahesh noted, positions ADE to service both B737 and A320 aircraft landing gears.
Looking forward, ADE is considering further M and A opportunities, including partnerships with other airlines and original equipment manufacturers (OEMs). The company is also in discussions with Malaysia Airports Holding Bhd (MAHB) to lease an additional 20 acres within the KLIA radius to expand its MRO lines from the current 14 to 20 by 2026, and eventually 30 by 2028.
To meet the growing demand for MRO services, ADE is also acquiring another warehouse located 20 minutes from the newly launched hangar at KLIA, spanning 120,000 square feet. With a clear growth strategy, strategic partnerships, and a r
obust financial position, ADE is well-positioned for its potential IPO, marking another milestone in its evolution within the global aviation industry.