"If the ratio between local and foreign ownership in Krakatau Steel `s IPO is 60 to 40 in the IPO of PT Garuda the ratio would be 70 to 30," he said.
He said the rise in the portion for local investors was positive. "By favoring domestic investors institutionally as well as in retail it is hoped the Garuda`s IPO would get a boost," he said.
Garuda`s IPO is scheduled on February 11, 2011 and it will make the company the first state-owned company to go public this year.
"Garuda is flag carrier, a pride, in terms of economic value as well as non-commercial value. This will become a selling point in itself for Garuda," he said.
Regarding the IPO price, Mustafa said he hoped the company would get the best one. "I hope it will be around Rp1000 per share," he said.
In view of its good fundamentals it is hoped the company could get the best price.
"Besides being able to get the good price in the primary market it is hoped the company will also be attractive in the secondary market," he said.
Mustafa however is also aware that the price needs further study by the financial advisors for the Garuda IPO. "I hope it could reach Rp1,000 per share. Hopefully it will get support from the financial advisors," he said.
He said the bookbuilding process is still underway based upon investors` interest known during the roadshow.
Garuda plans to release 30 percent of its shares on February 11 to raise up to US$400 million. He said the shares to be sold include 10 percent shares held by PT Bank Mandiri.
PT Garuda`s president director, Emirsyah Satar, said he planned to conduct roadshows in Singapore, Hongkong, the US (Boston and New York) and London with regard to attract investors from the world markets.
Garuda booked a net profit of Rp194 billion until the third quarter of 2010. (*)
Editor: Kunto Wibisono
Copyright © ANTARA 2011
