"The price range has been indicated at between Rp750 and Rp1,100 per share," State Enterprises Minister Mustafa Abubakar said at his office here on Wednesday.
The minister said that the range was set based upon the results of analysis of underwriters and was adjusted with the company`s fundamental factors.
Earlier the minister said that his office hoped the IPO price would be at around Rp1,000 per share. However he also said that the price still had yet to be studied further by Garuda`s financial advisors.
"I hope the IPO price of Garuda Indonesia shares could be around Rp1,000 per share. Hopefully, it will be supported by the financial advisors," he said.
Garuda is scheduled to sell 30 percent of its shares to the public on February 11, 2011 and expected to raise around US$300 million to US$350 million.
"With its good fundamentals I hope the primary market price will also be good," he said. He also hoped the secondary market price was also good.
He said the shares to be sold include 10 percent shares belonging to PT Bank Mandiri.
PT Garuda Indonesia has named PT Danareksa Sekuritas, PT Bahana Securities and PT Mandiri Sekuritas as its domestic underwriters and UBS and Citibank as foreign underwriters.
Until the third quarter of 2010 the company booked a net profit of Rp194 billion.
R017
(SYS/H-YH/S012)
Editor: Suryanto
Copyright © ANTARA 2011
