The listing of GIAA shares was witnessed by State Enterprises Minister Mustafa Abubakar, the minister`s deputy for logistics and infrastructure, Sumaryanto, president directors of state-owned banks, Garuda`s board of directors and underwriters.
At the opening GIAA shares were traded at the lowest price of Rp600 per share and the highest atf Rp700.
Total frequency of transactions reached 189 times with a total volume of 14,670 lots worth Rp8.9 billion.
At the same time, the Composite Price Index (IHSG) was recorded at 3,360.809, up 10.31 points or 0,31 percent from the previous day.
GIAA was the third issuer listed at the BEI in 2011 operating in the air transportation sector.
Total GIAA shares listed as a blue chip were recorded at 22.640 billion at the initial public offering price of Rp750 per share.
The funds raised from the IPO reached Rp4.7 trillion with market capitalization reaching Rp16.98 trillion.
Total shares offered reached 6.355 billion while orders reached 3.33 billion and 3.008 billion shares were taken by underwriters.
The price earning ratio of the industry by February 10, 2011 was 18.54 while the price to book value of the industry was recorded at 0.80.
Underwriters of Garuda`s IPO include Bahana Securities, Mandiri Sekuritas and Danareksa Sekuritas.
State Enterprises Minister Mustafa Abubakar said he was optimistic the price of Garuda shares would increase in the months to come. He said the drop on the listing day happened because market conditions were just not good.
"The drop in the price of Garuda shares was a temporary picture in the midst of declining global and regional markets," he said.
He said ups and downs in the capital market were a common thing and "the drop in the Garuda share price this time was in line with the market conditions. I have predicted it."
He said the price would improve in the next six months. "What is certain is with the IPO Garuda`s funding needs have been met," he said.
Garuda`s president director Emirsyah Satar shared his view saying the drop had occurred because of market dynamics. "It is unavoidable because the markets are just slowing down," he said.
Asked about investors` loss, Emirsyah said the investment was long term. "They buy now and sell them later when the price is high," he said. (*)
Editor: Aditia Maruli Radja
Copyright © ANTARA 2011
