Air Asia, the low-cost airline based in Malaysia, has announced its intention to list its brand in Nasdaq, the US stock exchange that hosts many technology companies. The move is part of the company's strategy to monetize its intellectual property (IP) assets and diversify its revenue streams.
According to Air Asia, its brand is valued at US$1.15 billion. The company has a separate entity, called Capital A International, that will own and manage the brand and other IP assets. Capital A International will then seek a listing in Nasdaq through SPAC merger, while the airline business will remain listed in Malaysia under the name of Capital A Berhad.
But why would Air Asia want to list its brand in Nasdaq? What are the benefits and challenges of such a move? Here are some possible reasons:
- To access a larger and more diverse pool of investors. Nasdaq is one of the largest and most liquid stock markets in the world, with a market capitalization of over US$20 trillion. By listing its brand in Nasdaq, Air Asia can tap into a wider and more sophisticated investor base that values innovation and growth. This could help the company raise more capital and increase its valuation.
- To unlock the value of its IP assets. By creating a separate entity for its IP assets and listing it in Nasdaq, Air Asia can unlock the value of its intangible assets and generate more revenue from licensing, franchising, and partnerships. This could also create a positive spillover effect for its airline business, as it can benefit from the increased brand awareness and reputation.
In conclusion, listing its brand in Nasdaq is a bold and ambitious move by Air Asia to monetize its IP assets. The move could bring many benefits for the company, such as access to more capital and investors, and unlocking of the value of its IP assets.