This article first appeared in The Edge Financial Daily, on April 8, 2016.

AirAsia Bhd (-ve)

SHARES of AirAsia Bhd (fundamental: 0.2/3; valuation: 0.6/3) triggered our momentum algorithm for the second time this year. It was the fourth most active counter on the bourse yesterday, and saw some 22.39 million shares traded, before closing at RM1.89, down 1 sen or 0.5%.

Year-to-date, its share price has risen more than 46%.

Last Friday, AirAsia announced a proposed placement of 559 million new shares to its two founders, Tan Sri Tony Fernandes and Datuk Kamarudin Meranun, at RM1.84 per share to potentially raise RM1.01 billion.  

It intends to use the proceeds to reduce its gearing, finance aircraft, engines and parts, and for pre-delivery payments of aircraft, general corporate and working capital, while RM103.82 million of the funds will be used to partially fund the construction of its new headquarters at klia2 in Sepang. The exercise is subject to shareholders’ approval.

At its current price, the stock is trading at 1.18 times its book value.