PT. Garuda Indonesia (Persero) Tbk. officially becomes a public company
11-Feb-2011 After successfully transforming its business following a long a process towards becoming a public company, on Friday Garuda Indonesia is officially listed in the Indonesian Stock Market; an achievement which was the result of hard work and dedication from both internal and external parties. PT. Garuda Indonesia was listed on the main board of the Indonesia Stock Exchange or Bursa Efek Indonesia (BEI) as the third issuers in 2011 with the code GIAA.
During Garuda Indonesia's Initial Listing, 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."
GIAA released 6.335.736.000 (six billion three hundred and thirty-five million seven hundred and thirty-six thousand) shares on the market, or equivalent to 27.98% of the entire shares on the bourse, including PT. Bank Mandiri's (Bank Mandiri) shares amounting to 1.935.738.000 (one billion nine hundred and thirty-five million seven hundred and thirty-eight thousand) shares. The GIAA shares price was Rp. 750,- each. From the initial public offering, GIAA and Bank Mandiri target to secure IDR 4.751.803.500.000 (four trillion seven hundred and fifty-one billion eight hundred and three million and five hundred thousand).
Garuda Indonesia has enlisted PT Bahana Securities, PT Danareksa Sekuritas and PT Mandiri Sekuritas as joint lead underwriters, and Assegaf Hamzaf & Partners as its legal consultants.
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 - IDR 300 billion. "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%," explained Jamsostek Director, Hotbonar Sinaga.
He further added that the starting price of Rp. 750,- apiece is a reasonable quote according to evaluations by Jamsostek's internal investment team. Moreover, he was confident that Garuda Indonesia's shares are a lucrative prospect considering that Garuda Indonesia is the nation's only four-star airline by Skytrax rating, as well as the country's first airline listed in the Indonesian Stock Exchange.
Of the expected IDR 4.751 trillion in IPO proceeds, the company will set aside around IDR 3.300.000.000.000 for business expansions, while IDR 1.451.803.500.000 belongs to Bank Mandiri.