Garuda Indonesia has halved an initial public offering amid reports it had been forced into a downsize due to lack of interest and fears over the local stock market. 


State-owned enterprise minister Mustafa Abubakar said the airline would try to raise US$540 million in the listing, well down from its previous plan to raise US$1.14 billion. 


He said the airline would sell 26 percent of its stock in February and put an extra four percent on the market at a later date. 


Abubakar added, “We will allocate 80 percent of the shares to domestic investors and the rest to foreign investors.”


The Wall Street Journal said the airline had run into trouble with the IPO due to investor scepticism it can compete with rival regional carriers.
