Capital A Eyes US Listing via Special Purpose Acquisition with Aetherium Acquisition Corp

Capital A, the parent company of the renowned AirAsia brand, is gearing up for a strategic move to expand its presence in the United States financial market. The company has announced plans to undergo a backdoor listing on either the NASDAQ or the New York Stock Exchange by the end of the year, following a business combination agreement with Aetherium Acquisition Corporation. This notable venture positions Capital A, soon to be rebranded as Capital A International, at a valuation of USD1.15 billion on the US bourse.

The proposed transaction, which hinges on the approval of Aetherium’s shareholders among other standard closing conditions, will see Capital A International acquiring a 51% stake in Aetherium. This move will effectively render Capital A International a publicly traded entity on one of the two prestigious US stock exchanges. CEO Tony Fernandes is optimistic about the company commencing trading by July, marking a significant milestone in Capital A’s global expansion strategy.

This initiative follows Capital A’s announcement to the Malaysian Stock Exchange in November, regarding a letter of intent with Aetherium aimed at a US listing and business amalgamation. Currently listed on the Malaysian bourse, Capital A has been classified under Practice Note 17 (PN17) due to financial distress. The US listing is anticipated to be a key component of Capital A’s regularisation plan, which is mandatory for submission to Bursa Malaysia to address its PN17 status.

Tony Fernandes, in recent interactions with the US media, emphasized the US listing as a platform to introduce Capital A’s brand franchise and licensing potential to the American market, which is comparatively less acquainted with Capital A’s array of brands. He expressed confidence in the American market’s understanding of branding, which he believes surpasses that of Southeast Asia.

Capital A, previously operating as AirAsia Group, positions itself as an investment holding entity with interests spanning across travel, lifestyle businesses, aviation services, the AirAsia MOVE Superapp, fintech solution BigPay, and logistics venture Teleport.

Additionally, the company disclosed plans last month regarding a non-binding acceptance letter for AirAsia X Berhad (AAX) to acquire 100% of AirAsia Bhd and AirAsia Aviation Group (AAAG). This restructure aims to allow Capital A to pivot its focus towards non-aviation sectors while maintaining a significant stake in the AirAsia airline brands through Fernandes’ other investment channels with substantial shares in AirAsia X.

Capital A’s impending US listing represents an ambitious step towards diversifying its brand influence beyond the travel industry, exploring new ventures, brand developments, and creating character IP through strategic partnerships and merchandising initiatives.