KUALA LUMPUR, Jan. 23 (Xinhua) -- Teleport, the logistics arm of Malaysia-based Capital A, has signed a subscription agreement with funds managed by HPS Investment Partners on Thursday for the issuance of redeemable convertible perpetual securities to raise a total consideration of 50 million U.S. dollars as pre-initial public offering (IPO) growth capital.
The firm said in a statement that this raise values Teleport at 500 million U.S. dollars pre-money and will accelerate the expansion of the firm's unique cross-border eCommerce model globally.
This capital raise allows Teleport to strengthen its balance sheet and fund network growth with its key partner airlines, ahead of a future public listing.
"This partnership is immensely beneficial to the AirAsia airlines, to work with a dedicated partner to maximize our belly space and network utilization," said Tony Fernandes, chief executive officer of Capital A.
He added this updated valuation represents an unrealized return of over 100-fold for Capital A, and positions Teleport well for a future IPO. ■
