We see low-cost flight business growing rapidly so we need to develop the CitilinkJakarta (ANTARA) - National flag carrier Garuda Indonesia expects to receive a capital injection of up to US$350 million from its initial public offering (IPO) this year.
"We hope we will get an additional fund of around US$300 million to expand our business," Garuda Indonesia Vice President for Corporate Communication Pujobroto said at the Coordinating Ministry for Economic Affairs here on Thursday.
He said Garuda plans to buy 11 planes this year as part of efforts to develop its business. "In 2010, we bought a total of 24 planes. This year we plan to buy 11 more planes," he said.
The addition of planes is also designed to develop the fleet of Citilink, Garuda`s low-cost flight division, he said.
"We see low-cost flight business growing rapidly so we need to develop the Citilink," he said.
According to the IPO`s prospectus, Garuda plans to buy 10 Boeing 737-800 NG aircraft, six Airbus A330-200 aircraft, five narrow-bodied aircraft for its subsidiary Citilink, and five Sub-100 aircraft.
Pujobroto said Garuda has conducted roadshows for the IPO in a number of major cities in the world.
"We conducted roadshows in Singapore for two days, Hong Kong two days and London one day," he said.
During the roadshows, the management of the state flag carrier explained its latest financial developments, he said.
Garuda President Director Emirsyah Satar said earlier the IPO is expected to inject Rp10 trillion in funds to the airline. In the IPO Garuda will sell 28.93 percent of its shares. The IPO will also include the sale of state-owned Bank Mandiri`s 7.54 percent stake in the airline.(*)
Editor: Aditia Maruli Radja
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