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Garuda's IPO may be delayed again, government to increase portion for local investors

12-Jan-2011 9:15 AM

Garuda Indonesia’s IPO may be delayed with the airline yet to submit required documents to the stock market supervisory agency by 14-Jan-2011 (Reuters/Antara News, 12-Jan-2011). The Indonesian Government planned initially to launch the IPO Nov-2010, but delayed it until 2011. The carrier aims to raise up to USD500 million by selling a stake of approximately 36.5%, or 9.3 billion new and existing shares at IDR1000 each, via an initial public offering on 11-Feb-2011. A public expose was conducted on 12-Jan-2011 and a roadshow will commence to Singapore, Hong Kong, the US (Boston and New York) and London to attract investors. The bookbuilding process is still underway based upon investor interest from the roadshow. The government will increase the portion of ownership for local investors in the IPO with state enterprises minister Mustafa Abubakar stating: "If the ratio between local and foreign ownership in Krakatau Steel`s IPO is 60 to 40 in the IPO of PT Garuda the ratio would be 70 to 30."