The airline, which raised 988 million ringgit ($310 million) in its initial public offering, climbed to as high as 1.28 ringgit from an offer price of 1.25 ringgit. The benchmark FTSE Bursa Malaysia KLCI Index rose 0.2 percent. It was the country’s most actively traded stock with more than 100 million shares changing hands.
“We are buying for long term,” said Ang Kok Heng, who bought the stock in the IPO as chief investment officer at Phillip Capital Management Sdn. where he helps manage $428 million. “Those who are in for short-term profits, let them sell it. We are buying today for some clients and will buy more if the stock falls.”
AirAsia X’s share sale last month survived market turmoil brought on by concerns that the U.S. Federal Reserve will reduce stimulus and China’s economic slowdown may deepen. The budget carrier, a spin-off from Tony Fernandes’ AirAsia Bhd., will use IPO proceeds to help finance new aircraft as it fends off rising competition from Singapore Airlines Ltd.’s long-distance budget unit Scoot that started flying last year.