Capital A, owner of AirAsia Aviation Group (AAAGL) and AirAsia Bhd (AAB), has said it is "in the midst of exploring a potential fund-raising exercise by its aviation business".

However, the evaluation is still in its preliminary stage, and the board of directors has not been presented with a firm proposal to deliberate on, the company elaborated in a Bursa Malaysia filing on April 15.

The announcement was made after what the company called incorrect reporting at the financial news site The Edge, which claimed that Capital A, which owns and licenses the AirAsia brand, was seeking a private placement of new ordinary shares of up to USD400 million, a move the company denied.

Capital A is planning to undertake a backdoor NASDAQ or New York Stock Exchange listing later this year. Additionally, it has agreed with AirAsia X Bhd, dba AirAsia X, to extend the negotiation period to April 30 for the proposed acquisitions of AirAsia Aviation Group and AirAsia Bhd by AirAsia X. This manoeuvre is designed to allow Capital A to focus on its non-aviation businesses.

AAB operates AirAsia, while AAAGL operates the AirAsia brands based outside Malaysia, including Philippines AirAsia, Indonesia AirAsia, and the AirAsia Cambodia startup.