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Garuda IPO back on track for Feb-2011; financial results corrected

10-Nov-2010 10:31 AM

Indonesia's State Enterprises Ministry stated Garuda Indonesia's plans to conduct an IPO is on track for Feb-2011 (Jakarta Globe/Dow Jones, 09-Nov-2010). The Ministry also corrected its financial results for the Jan-2010 to Sep-2010 period from a USD4.4 million loss to a USD22 million profit. The correct data had been verified by Deloitte. The carrier's IPO plans were in doubt due to the loss result in the period. The carrier stated it expects the bottom line to improve in 2011 due to higher revenue and lower cost of operations. The carrier plans to sell a stake of up to 40% in the IPO, expected to raise up to USD400 million. The carrier will hold a marketing roadshow in Singapore, Hong Kong, London, Dublin, Boston and New York later this month. The proceeds from the IPO will be used to help finance capital expenditure over the next three years.