Would you buy what Richard Branson gave away: The Air Asia X IPO seems grossly over-priced
Tony Fernandes's AIr Asia X IPO is up and running after being talked about for the past three years. Media in Malaysia and elsewhere have been happy to promote it, but are saying nothing of the fact that Richard Branson's Virgin Group sold out of his Air Asia X less than a year go, despite the impending IPO. The following is presented to readers as a reference so that they may arrive at their own conclusions. A) Fernandes's valuation of Air Asia X , based on a reported IPO price of RM 1.30 per share, and 2,370,370,387 paid-up shares post-IPO : (252/0.106)*1.3 = 3090.56603774 million ( Tan Sri Tony Fernandes will be on a roadshow to meet retail investors and remisiers across the country in early June for the AirAsia X (AAX) initial public offering, whose shares are likely to be priced at RM1.10 to RM1.30 a share. The airline is offering a larger retail portion than most companies in recent times, comprising 252 million shares or 10.6% of its enlarged sh