AirAsia will soon get a $100 million investment from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund.
Bloomberg News, while quoting sources familiar with the matter, said that PIF is looking to invest in Malaysia’s Capital A-owned budget airline.
The Middle East investment forms the majority of AirAsia’s approximately one billion ringgit ($225 million) fundraising target, with the company also in discussions with potential investors from Singapore and Japan, the media report added.
The report said the Malaysian airline is raising funds and offering investors up to a 15 percent stake at a $2 billion valuation, as it works on a growth strategy after pandemic-induced losses.
The parent company expects to record a profit this year after a loss in 2024 when it recorded a one-off charge in its aviation business.
Capital A is also offloading the budget carrier to long-haul unit AirAsia X Bhd to consolidate the operations under a single AirAsia brand.
Asian airlines in general faced a challenging year in 2024 with supply chain problems disrupting operations and exposing them to strengthening consumer protection rules, according to industry executives.
