Business

[UPDATED] Raya Airways mulls IPO: sources

Air freight carrier reportedly planning move since mid-2020

Updated 5 years ago · Published on 27 Sep 2021 6:50PM

[UPDATED] Raya Airways mulls IPO: sources
It is as yet unknown if Raya Airways plans to list on Bursa Malaysia or elsewhere as discussions are still ongoing, says a source. – Raya Airways Facebook pic, September 27, 2021

by Emmanuel Samarathisa

KUALA LUMPUR – Raya Airways Sdn Bhd may be eyeing an initial public offering (IPO) soon, sources familiar with the matter tell The Vibes. 

The air freight carrier has been planning since mid-last year, a source said: “They have been talking about this for a while.”

The company, too, has been making some changes in that direction, the source added, especially on the back of heightened demand for cargo brought about by the Covid-19 pandemic, including hiring technical staff from the likes of the Malaysian Aviation Commission. 

But details remain thin as to an exact timeline and whether Raya Airways plans to list on Bursa Malaysia or elsewhere as discussions are still ongoing, the source said.

The Vibes has reached out to Raya Airways for comment but has been unable to get a reply at the time of writing.

Raya Airways’ directors are Mohamad Najib Ishak, Mohamad Yusof Ishak and Siti Nur Aishah Ishak, while its sole shareholder is Raya Aviation Holdings Sdn Bhd.

Raya Aviation, formerly Amrul Nizar Anuar Resources Sdn Bhd, is held in trust by CIMB Islamic Trustees Bhd, with Najib holding a share.

Najib, Yusof and Siti Nur Aishah are businessman Datuk Ishak Ismail’s children. Ishak was formerly the KFC Holdings (M) Bhd deputy executive chairman. He was also a director of holding company Raya Aviation until May 26, 2016.

Filings show the air freight carrier raked a profit for the latest two financial years.

Raya Airways posted a net profit of RM77 million on the back of RM334.12 million in revenue for the financial year ended December 31, 2020. The previous year, it posted an RM3.02 million net profit and RM197.68 million in revenue.

Raya Airways is a restructured Transmile Air Services Sdn Bhd, which was formerly owned by Transmile Group Bhd. 

The Transmile group was the subject of what was then the largest corporate scandal due to an RM530 million accounting fraud charge in mid-2007.

The group then disposed of Transmile Air to Amrul Nizar Resources for RM40 million and subsequently renamed it Raya Airways. – The Vibes, September 27, 2021

Clarification: The earlier post stated that Ishak is believed to still be a driving force behind the day-to-day operations of the company. However, the running of the company is led by group managing director Najib. Ishak does not control Raya Airways. The error is much regretted

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