Capital A Berhad has appointed
senior banker Effendy Shahul Hamid as its new deputy CEO, as the
group prepares for a dual listing in Hong Kong and a Nasdaq debut
for its branding arm later this year, Reuters
reports.
Effendy, the former CEO of
consumer and digital banking at CIMB Group, joins the leadership
team on March 30 to steer the group's post-aviation growth
strategy. CEO Tony Fernandes confirmed that the group has already
appointed bankers for the Hong Kong IPO, which is expected to
trigger between July and August 2026. The move follows the January
completion of the sale of its short-haul airline business to
AirAsia X (AAX), leaving Capital A to focus on high-growth
non-aviation sectors.
The appointment of a heavyweight
digital banker marks Capital A’s definitive transition from a
struggling airline operator to a lean, diversified tech and
services holdings firm. By hiving off the capital-intensive
aviation arm to AirAsia X, Fernandes is attempting to reset the
group’s valuation ahead of the HK and US listings.
The timing is high-risk; both
Capital A and AirAsia X shares have plunged, 27% and 41%
respectively, over the past month as the US-Israel-Iran conflict
sends jet fuel prices soaring. For investors, the success of these
spin-offs depends entirely on Capital A finally shedding its PN17
distressed status, which Fernandes claims will happen very soon
following the submission of audited accounts by April
10.
Beyond the core group, Fernandes
is reviving plans to list the group’s branding unit, AirAsia Next,
in the US. The Nasdaq listing is targeted for the end of 2025, with
an estimated valuation of $1.5bn. Capital A currently values its
non-aviation portfolio, comprising ADE (engineering), Teleport
(logistics), Santan, and AirAsia Next, at a combined
$3.5bn.
AirAsia said it will keep fares
low and has no plans to cancel flights due to the Middle East
conflict. The final step to exit PN17 is the submission of audited
financial statements, expected by April 10.
Industry analysts note that while
the group has achieved four consecutive quarters of profitability,
the backdoor listing of AirAsia Next on the Nasdaq will face stiff
compliance scrutiny, similar to the challenges that stalled the
2024 attempt. Capital A's shift toward a tech-driven services model
is intended to decouple its revenue growth from the volatile
fuel-driven headcount of a traditional airline.
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