KUALA LUMPUR, July 29 — Maybank Investment Bank’s (Maybank IB) purchase of AirAsia X shares was in line with the price stabilisation mechanism introduced by the Securities Commision in 2008.

In a statement today, Maybank IB said the mechanism aimed to enhance confidence in the market for new issues of shares and to facilitate fund-raising activities.

“It would ensure that the demand for shares in an initial public offering can be met in an efficient manner and that price volatility during the period immediately after listing can be minimised,” it said.

As disclosed in the AirAsia X IPO prospectus, Maybank IB, as the stabilising manager, can purchase up to 118.5 million shares in AirAsia X within the first 30 days from listing.

“This is as a result of an over-allotment option granted by Orix Airline Holdings Ltd and Manara Malaysia I Ltd to Maybank IB as the stabilising manager,” it said. — Bernama