Garuda debuts on Indonesian stock exchange
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Garuda Indonesia was officially listed in the Indonesian Stock Market on Friday. The company released 6,335,736,000 shares on the market, or equivalent to 27.98% of the entire shares on the bourse, with a share price of IDR750 (eight US cents) each.
Garuda Indonesia President & CEO, Emirsyah Satar, said; “This is a historic day for us, as well as the beginning of new challenges. From now on, as a public company, we are required to conduct a more transparent business and work harder in order to display better performance.”
One of the first investors was PT Jamsostek (Workers Insurance Company), buying 5% of Garuda Indonesia’s free float shares which were valued at an estimated IDR 250-300 billion.
Of the expected IDR 4.751 trillion in IPO proceeds, Garuda will set aside around IDR3.3 trillion for business and fleet expansion purposes. Local media yesterday suggested that the airline will use the funds to buy 57 new aircraft, including Airbus A330s and Boeing 737-800s.
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