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Garuda Indonesia declared a public company

14-Feb-2011 10:04 AM

Garuda Indonesia announced (11-Feb-2011) it is officially listed on the Indonesian Stock Market with the code GIAA. GIAA released 6,335,736,000 shares on the market, or equivalent to 27.98% of the entire shares on the bourse, including PT Bank Mandiri’s 1,935,738,000 shares. The GIAA share price was IDR750 each. From the initial public offering, GIAA and Bank Mandiri target to secure IDR4,751,803,500,000 (USD532 million). PT Jamsostek purchased 5% of Garuda’s free float shares which were valued at an estimated IDR250 billion – IDR300 billion. Jamsostek director Hotbonar Sinaga said: “Initially, we were planning to purchase more than the current shares bought, but our company’s investment guidelines restricts us to a maximum of 5%.” Of the expected IDR4.751 trillion in IPO proceeds, the company will set aside IDR3.3 trillion for business expansions, while IDR1.451 trillion belongs to Bank Mandiri. The carrier plans to use the proceeds to add new routes and build a fleet of 154 aircraft, including 25 for its budget subsidiary and four freighters, by 2015. [more]