Capital a: Capital A Bhd has clarified that Bursa Malaysia Securities Bhd's decision to reject their application for a time extension to complete share distribution will not materially affect the group's ongoing corporate exercise.

According to BERNAMA News Agency, the airline company stated that while there is no change to the group's strategy, the timeline for completion has been revised. AirAsia X Bhd (AAX) will allot and issue new shares simultaneously with the placement shares in the AAX private placement. The distribution is contingent upon the completion of this private placement, as the new AAX shares must be issued before distribution to Capital A shareholders.

Bursa Securities granted AAX an extension to complete its private placement by January 19, 2026, aligning Capital A's timeline accordingly. The new AAX shares will be allotted to Capital A shareholders upon issuance, as initially planned. Capital A announced the entitlement date as December 3, 2025, assuming adequate time for identified investors to provide necessary documentation.

The announcement of the entitlement date was deemed necessary for Capital A to submit a supplemental application to the high court for an ancillary order under Section 116 of the Companies Act 2016. This application pertains to reducing the company's issued share capital by approximately RM2.7 billion, based on AAX's closing market price of RM1.62 per share on the entitlement date.

The capital reduction quantum will be determined by the closing market price of AAX shares on the entitlement date. As a result, the supplemental court order application could not be made until the entitlement date was announced. Capital A carefully planned the entitlement date to allow sufficient time to obtain the supplemental court order.