13-Jan-2011 10:32 AM

Garuda finalising IPO plans

Indonesia’s capital market regulator, Bapepam-LK, granted permission for Garuda Indonesia to launch its planned IPO scheduled for 11-Feb-2011 (Reuters/Dow Jones/The Jakarta Post/Bloomberg, 12-Jan-2011). State-Owned Enterprises Minister Mustafa Abubakar said his office was still finalising details with Garuda management and Bank Mandiri, which owns a 10.6% stake. Acting finance director Elisa Lumbantoruan said "We need to spend huge investment of about USD1.3 billion over the next five years including to rent and buy airplanes." Approximately 80% will be for aircraft. The carrier has a fleet of 87, which will increase to 153, including the low-cost units, by the end of 2014. Its low-cost unit’s fleet will rise to 25 from six. The carrier expects to raise up to USD1.1 billion in the IPO, selling 9.36 billion shares at a price of IDR750 and IDR1100 each, equivalent to a 36.5% stake. It has appointed Citigroup Inc and UBS AG as the international bookrunners and PT Bahana Securities, PT Danareksa Sekuritas and PT Mandiri Sekuritas as domestic bookrunners.