KUALA LUMPUR: Capital A Bhd, which owns budget carrier AirAsia, is evaluating a potential dual listing on the Hong Kong Stock Exchange (HKEX) as the airline prepares to exit the Practice Note 17 (PN17) status.

The move is part of the group's strategy to access global capital markets and support the growth of its digital and aviation businesses, Capital A said in a statement today.

The plan follows a meeting with HKEX, where the group was invited to explore the listing as a means of tapping international and Mainland Chinese investors.

Capital A said discussions are ongoing and that it is close to appointing an international investment bank to advise on the proposed listing structure and timeline.

The process remains subject to internal assessments and regulatory approvals.

"Capital A is proudly rooted in Asean but built for the world. With over 20 destinations across Greater China and significant business exposure in the region, we see Hong Kong as a natural capital markets gateway.

"A dual listing would allow us to tell our story on a global stage and connect with a broader investor base that values digital-first, asset-light business models," said group chief executive officer Tan Sri Tony Fernandes.

Capital A's portfolio includes logistics platform Teleport, aircraft maintenance firm Asia Digital Engineering and digital travel app AirAsia MOVE.

Fernandes said these subsidiaries have gained strong traction and the proposed listing aligns with the group's ambition to attract strategic investors and enhance long-term shareholder value.

"The potential HKEX listing is seen as a natural next step following Capital A's ongoing PN17 regularisation plan, which is targeted for completion by mid-2025," the company said.

Upon exiting PN17 status, Capital A said it intends to pursue strategic initiatives to further strengthen its capital structure and expand its global presence.

It added Hong Kong's deep capital markets, enhanced listing regime and access to a diverse investor base make HKEX an attractive venue for Asean companies seeking global growth.