Capital A eyes HK listing, subsidiary spin-offs

PETALING JAYA: Maybank Investment Bank Research (Maybank IB) has maintained a “buy” call on Capital A Bhd, citing its various corporate exercises.

The research house also raised the stock’s target price by 9% to 75 sen, from 69 sen previously.

In a note to clients, Maybank IB said Capital A is close to having its Practice Note 17 (PN17) classification uplifted, and is expected to raise more capital, publicly list its subsidiaries, and dividend their shares in specie to shareholders.

Moreover, Capital A plans to monetise its AirAsia X Bhd (AAX) shares and warrants, and declare a special cash dividend per share (DPS).

“Thanks to the disposal of its five airlines, Capital A’s shareholders’ equity position has turned positive.

“Having a positive shareholders’ equity position is a prerequisite for PN17-classified companies like Capital A to have their classification uplifted.

“The other prerequisite is to demonstrate two consecutive quarters of profitability after the shareholders’ equity position has turned positive.

“Capital A may apply for a waiver from the second prerequisite, but even if it does not secure one, we gather that Capital A will have its PN17 classification uplifted by May or June 2026,” the research house noted.

Maybank IB said Bursa Malaysia has the power to grant waivers for the second prerequisite to PN17-classified companies which demonstrate two consecutive quarters of profitability before their shareholders’ equity position has turned positive

The research house added that on Jan 22, 2026, Teleport raised US$50mil in redeemable convertible preference shares, and there are near term plans by AirAsia MOVE, Asia Digital Engineering Sdn Bhd (ADE) and AirAsia Next to raise capital as well.

The capital raise values Teleport at US$500mil. The proceeds will be utilised primarily to purchase third-party (non-AirAsia) cargo belly capacity.

Capital A stated that AirAsia MOVE is in talks to raise RM77mil in debt to purchase third-party flights and hotel room inventory to sell on its app for higher margins.

“Even Capital A itself is considering a dual listing on the Hong Kong Stock Exchange. In the long term, the plan is to publicly list each subsidiary and dividend their shares in specie to Capital A shareholders,” the research house said.

Maybank IB added that the company also plans to list ADE in the first half of 2027.

Excluding AirAsia MOVE and its 20% shareholding in AAX, the research house said Capital A stated that ADE, Teleport, Santan and AirAsia Next are worth a collective US$3.5bil.

Meanwhile, Maybank IB noted that Capital A currently does not have enough retained profits to distribute all its AAX shares and warrants in specie to shareholders.

As such, the options being explored include gradually distributing AAX shares and warrants in tandem with retained profits generated.

“Another option is accumulate enough retained profits to distribute AAX shares and warrants in specie wholesale, or to sell AAX shares and warrants to a third party and utilise the cash proceeds to pay a special DPS, which we gather can be executed via capital reduction to circumvent the requirement for sufficient retained profits,” the research house said.

Capital A stated it has not yet decided what to do with its AAX shares and warrants, but is acutely aware that they are a top priority for its shareholders.