Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Aviation  >>   Garuda seeks investor advice
NEWS UPDATES Asean Affairs   5 January 2011

Garuda seeks investor advice

Related Stories

November 26, 2010
AirAsia Indonesia to Surpass Malaysia Business

September 23, 2010
Indonesia delays Garuda's share sales until January 2011

August 31, 2010
Airport woes in Indonesia

April 29, 2010
Indonesia, Japan sign air transport deals

April 10, 2010
Indonesia reminds Myanmar junta of need to hold tranparent elections

January 16, 2010
Five Indonesian airports ready for open sky

November 24, 2009
Indonesia puts key airport projects on priority list

Flagship air carrier Garuda Indonesia plans to meet investors next week to gauge their demand on the company's planned Rp 4 trillion ($444 million) IPO.

Elisa Lumbantoruan, Garuda's acting financial director, said that the company plans to begin meeting overseas investors early next week.

"We will meet investors in Asia's financial centers, including Singapore and Hong Kong," Elisa said. "Listing is expected on the Indonesia Stock Exchange in mid-February."

Garuda will continue seeking investors in London and New York in the third week of January.

Elisa said Garuda had already submitted all the necessary prerequisites to capital market watchdog Bapepam-LK and the Indonesian Stock Exchange.

Analysts said Garuda's share sale was expected to help boost corporate governance and improve transparency.

Garuda plans to sell up to 40 percent of the company, and it expects to raise around Rp 4 trillion. Elisa said the initial share sale would also include the sale of state-owned Bank Mandiri's 10 percent share in the carrier, which is worth Rp 1 trillion.

Citigroup and UBS AG were hired as financial advisers for the sale. State brokerage firm Danareksa Sekuritas, Bahana Securities and Mandiri Sekuritas will also help arrange the sale, Elisa said.

Proceeds from the IPO will go toward financing further expansion, such as purchasing new planes, adding destinations and improving maintenance standards. Garuda plans to add new routes, including to India, and it also wants to increase its fleet from 84 planes to 120 by 2014.

Emirsyah Satar, Garuda's president director, had said earlier that 2011 profit would not be as high as expected due to Garuda's agressive expansion.

He also said passenger growth would be around 10 percent.

After a good turnaround in 2009, Garuda posted a nine-month profit of Rp 194 billion, far below its full-year profit target of Rp 1.15 trillion, with its unpreparedness for expansion cited as the cause.

Garuda purchased 24 next-generation aircraft last year, the company's biggest expansion in the space of a year, but it lacks the qualified pilots needed to fly the planes. In addition, its new routes have yet to produce a profit.

Garuda concluded a $288 million debt restructuring plan with its creditors in Europe last year. The European Export Credit Agency agreed to extend the maturities of Garuda's loans to 2016, and the agency agreed to be repaid in yearly installments.

Airline reviewer Skytrax named Garuda the world's most improved airline in May after a survey of 17.9 million travelers.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    5  January 2011 Subsribe Now !
• Garment production still lags in Cambodia
Subcribe: Asean Affairs Global Magazine
• Garuda seeks investor advice Asean Affairs Premium
• Rising inflation in Indonesia
• Proton contract assembly plant in India
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Terminal expropriation turns off investors
• Singapore's income gap a worry
• Thai inflation to average 3.4 percent
• Thailand HSBC plans new branches
Asean Analysis    5 January 2011 Advertise Your Brand
• Border blunders Sponsor Our Events
Asean Stock Watch    5 January 2011
• ASEAN Market Outlook
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand