Garuda Indonesia has officially launched its much-delayed IPO in Jakarta, indicating it may raise up to US$1.14 billion, which would be the nation’s biggest initial share offering since July 2008.
Garuda’s president director Emir-syah Satar said Garuda “actually needed only about $350 million from the IPOâ€.
“We therefore will let the government, as the majority shareholder, decide whether the IPO will be downsized,†he said.
The flag carrier’s chief financial officer said about 80 percent of the proceeds of the IPO would be spent on expanding the airline’s fleet.
According to the IPO’s prospectus, Garuda plans to buy 10 Boeing 737-800 NG aircraft, six Airbus A330-200 aircraft, five narrow-body aircraft for its subsidiary Citilink, and five Sub-100 aircraft.
The remaining 20 percent will be used to finance the company’s capital expenditure for both Garuda and its subsidiary companies to expand their businesses.
Garuda executives have embarked on an IPO roadshow to Singapore, followed by Hong Kong, London, Boston and New York.
