Asia Digital Engineering Raises $100 Million For A New Hangar

Asia Digital Engineering (ADE), Capital A's engineering and maintenance subsidiary, announced a US$100 million investment from OCP Asia Ltd. for the construction and operation of a new state-of-the-art 14-line aircraft maintenance hangar facility in Sepang. The investment will also be used to expand ADE's operations in other sectors and geographical markets, highlighting the company's commitment to long-term growth and success.

YB Senator Datuk Seri Utama Tengku Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry Malaysia, said at the signing ceremony on Wednesday: "I am pleased to see that Malaysia continues to be an attractive destination for foreign direct investment, as well as stories of entrepreneurial success." We are all aware of and proud of AirAsia's contribution to the region's aviation industry, which has impacted the lives of millions of people. I am optimistic that ADE will be able to replicate AirAsia's success story by continuing to grow its offerings and enhance its position in the MRO market, both regionally and globally.

The government is committed to supporting the growth of the aviation industry and we will continue to work closely with all stakeholders to create a conducive environment for growth and investment.”

"On behalf of Capital A, I sincerely congratulate the team at ADE," stated Tony Fernandes, CEO of Capital A. ADE got great interest from various worldwide investment funds during its capital raising exercise, who saw the regional and global airline industry's recovery potential. This investment validates Capital A's objective of diversifying outside airline operations. We have now established a magnificent collection of airline, airline services, digital, and logistics companies with enormous upside, and now that Covid has concluded, investors and the public markets are understanding Capital A's enormous potential."

Mahesh Kumar, CEO of ADE said: “We are incredibly excited to have secured this significant backing from OCP Asia, which has an extensive investment experience across multiple industries throughout Asia Pacific. The investment from OCP Asia will enable us to construct a new, state-of-the-art 14-line aircraft maintenance hangar facility in Sepang in addition to existing facilities at our core AirAsia operating hubs, making ADE one of the largest aircraft MRO service providers in the region. We are grateful for the support shown by OCP Asia and look forward to a successful partnership. We would also like to thank Broadgate Advisers who acted as our financial adviser throughout this fundraising exercise.”

Teall Edds, Founding Partner of OCP Asia said: “OCP Asia is pleased to have the opportunity to invest in and partner with ADE as it executes the next phase of its growth strategy. We believe ADE, with its best-in-class engineering capabilities, technology-driven value proposition and experienced management team is well positioned to be a leading aviation MRO player in the region. We appreciate the efforts undertaken by the Ministry of Transport, Ministry of Investment, Trade and Industry, and Malaysia Airports Holdings Berhad to develop Malaysia into a regional aviation hub. We are very positive on the recovery of the aviation industry following the challenges of the past three years, and we see the MRO sector as a critical element within the aviation value chain and a key beneficiary of the post-pandemic recovery of global air travel.