Capital A Bhd will be uplifted from Practice Note 17 (PN17) status effective May 20, 2026, ending over four years under the classification imposed in January 2022 due to financial distress linked to the Covid-19 pandemic [1, 2, 3]. Bursa Malaysia approved the company’s application for early removal from PN17, marking a key milestone in Capital A’s turnaround [1, 2, 3].

Capital A completed its regularisation plan in January 2026. The plan included the disposal of its aviation arm to AirAsia X Bhd and a High Court-approved capital reduction of approximately RM5.5 billion [1, 3]. Post-disposal, Capital A’s operations now comprise Asia Digital Engineering (maintenance, repair, and overhaul), Teleport (logistics), AirAsia MOVE (travel platform), Santan (food and beverage), and AirAsia Next (brand licensing and digital IP) [1, 2, 3].

The company’s share price responded positively, rising 3.5 sen or 8.54% to 44.5 sen on May 19, valuing the company at RM1.97 billion [1, 2]. Capital A’s restructuring restored its shareholders’ funds to positive territory, while its non-aviation businesses delivered five consecutive profitable quarters from Q1 2025 to Q1 2026 [3].

Capital A first triggered PN17 criteria in July 2020 but was initially spared classification due to pandemic-related reliefs. It formally entered PN17 in January 2022 after those extensions were dismissed [1, 2].

Teh Mun Hui, Capital A’s chief financial officer, said the group will focus on core businesses with aims to deliver sustainable value through coordination and efficient management of resources across Asia Digital Engineering, Teleport, AirAsia MOVE, AirAsia Next, and Santan [3]. CEO Tan Sri Tony Fernandes called the recent PN17 upliftment an "emotional moment" reflecting the hard work and resilience behind the regularisation plan [3]. Deputy CEO Effendy Shahul Hamid expressed determination to execute "with speed and ambition" while demonstrating clear growth prospects across Capital A’s business units [3].

Capital A’s exit from PN17 status takes effect on May 20, 2026, following Bursa Malaysia’s approval.