KUALA LUMPUR (Apr 29): Long-haul budget airliner AirAsia X Bhd (AAX), which had proposed a rights issue with warrants in January this year, has fixed the issue price of 22 sen apiece for the rights shares at an entitlement basis of 3 rights share for every 4 existing AAX shares.

Meanwhile, the exercise price of the warrants has been fixed at 46 sen each at an entitlement basis of one warrant for every two rights shares subscribed by the entitled shareholders.

The last entitlement date for the rights issue with warrants is by 5pm, May 15.

The issue price of 22 sen per rights share represents a discount of 50% to the 5-Market Day VWAMP (volume weighted average market price) of AAX shares up to and including April 28, 2015 of 44 sen, being the last trading day of AAX shares prior to the date of this announcement.

The issue price also represents a discount of approximately 37% to the TERP (theoretical ex-right price) of AAX shares of 35 sen, based on the 5-Market Day VWAMP of AAX Shares up to and including April 28, 2015. The exercise price of 46 sen for each warrant represents a premium of approximately 30% over the TERP of AAX share.

Based on the existing issued and paid-up share capital of AAX, the proposed rights issue with warrants will involve the issuance of 1.7 billion rights shares to raise gross proceeds of up to RM391.1 million. Should all the warrants be exercised, it would also involve the issuance of 888.88 million warrants to raise potential proceeds of up to RM408.88 million.

AAX previously announced that the proceeds will be utilised towards repayment of borrowings, general working capital and expenses in relation to the corporate exercise.

AAX closed unchanged at 43.5 sen today, giving it a market capitalisation of RM1.03 billion.