KUALA LUMPUR (Nov 18): AirAsia Group Bhd said its two-for-six rights issue of redeemable convertible unsecured Islamic debt securities (RCUIDS) with free warrants will go ex on Dec 1.

Trading for the rights of the RCUIDS will commence from Dec 3 to Dec 10, with the despatch date set on Dec 6. The subscription results will be announced on Dec 24, it added.

The low-cost carrier has also fixed the exercise price of the free detachable warrants at RM1 apiece.

AirAsia on July 12 proposed the rights issue of RCUIDS with free warrants on the basis of two RCUIDS and one warrant for every six AirAsia shares held, in order to raise RM1.02 billion.

Each RCUIDS will be priced at 75 sen apiece, and come with a seven-year tenure and a profit rate of 8% per year. Each RCUIDS are also convertible to one new AirAsia share on a one-to-one basis.

At the time, AirAsia said it is seeking unconditional and irrevocable written undertakings for a full subscription from co-founders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun, as well as their investment vehicles Tune Live Sdn Bhd and Tune Air Sdn Bhd.

AirAsia also plans to arrange the underwriting for at least 50% of the remaining portion of the RCUIDS not undertaken by them, which makes up RM615.89 million of the proposed fund-raising.

The RCUIDS holders shall have the right to surrender the nominal value of the RCUIDS (outstanding amount) for conversion into new AirAsia shares at any time during the conversion period at the conversion price.

Shares of AirAsia settled up one sen or 0.89% at RM1.13, giving it a market capitalisation of RM4.4 billion. The counter has gained 27.68% this year.