January 22, 2026 -- Capital A Berhad’s (“Capital A”) has received the High Court of Malaya’s approval on capital reduction of RM5,507,594,000 today, marking the completion of all major steps required under Capital A’s regularisation plan. The regularisation plan will be completed upon lodgement of the High Court sealed order with the Registrar of Companies by next week.
Today’s High Court approval follows recent end-phase milestones, including the completion of the aviation business disposal (AirAsia Berhad and AirAsia Aviation Group Limited) to AirAsia X Berhad (“AAX”) on 16 January 2026 and the listing and distribution of AAX shares to entitled Capital A shareholders on 19 January 2026.
The remaining non-aviation businesses under Capital A have been consistently profitable for the past four quarters (Q4 2024 to Q3 2025). Upon completion of the regularisation plan, Capital A’s shareholders’ funds will turn positive. With the above, Capital A would have addressed all the PN17 criteria, while the uplift remains subject to regulatory approval.
At a glance
- Company
- Capital A Berhad
- Announcement
- Regulatory
Key figures
- Approved capital reduction
- RM5,507,594,000
People
- Teh Mun HuiGroup Chief Financial Officer of Capital A
Products and programs
Teh Mun Hui, Group Chief Financial Officer of Capital A commented, “This order is the final court step in our PN17 journey. We set out to fix the fundamentals and we followed through on every step – completing the aviation business disposal, distributing AAX shares to our shareholders, and securing the approvals needed to clean up the balance sheet. We are now working towards the upliftment of PN17 status.”
Post-regularisation, Capital A will operate as a group focused around five businesses: Asia Digital Engineering (MRO), Teleport (logistics), AirAsia MOVE (travel platform), AirAsia Next (brand & IP) and Santan (F&B). Together with a consolidated AirAsia Group, the ecosystem is designed to lower costs, grow revenue and deliver sustainable value to customers and shareholders.
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In brief
Capital A Berhad says the High Court of Malaya approved a capital reduction of RM5,507,594,000, completing the major steps in its regularisation plan. The plan will be finalized after the court’s sealed order is filed with the Registrar of Companies, which the company expects to happen by next week. Capital A says its aviation business disposal and the distribution of AirAsia X shares to eligible shareholders were completed earlier in January. It also reports that its remaining non-aviation businesses were profitable for four consecutive quarters through Q3 2025. Once the plan is complete, shareholders’ funds are expected to become positive. The company says it has addressed the PN17 criteria, but removal of that status still requires regulatory approval. It plans to focus on five non-aviation businesses.
Key takeaways
- The High Court approved Capital A’s RM5,507,594,000 capital reduction.
- Filing the sealed court order is the remaining step to complete the regularisation plan.
- Capital A says its remaining non-aviation businesses were profitable for four consecutive quarters.
- PN17 uplift remains subject to regulatory approval.
Earlier from Capital A Berhad
- Capital A shares surge to a high of nearly 90% on ex-date for the distribution of AAX shares validating new strategic focus
- Capital A explores Bahrain as Middle East aviation, engineering and logistics hub to advance global expansion plans
- Capital A reaches new heights in ESG Scores as its sustainability strategy and airline efficiency gains pay off
- Capital A secures USD 443 million revenue bond to strengthen financial position and propel AirAsia’s growth
- Capital A embarks on the last mile for the creation of a stronger AirAsia Aviation Group
