Garuda Indonesia has announced plans to raise US$300m (A$340m) in an initial public offering either during the late second or third quarter of the year after the state-owned carrier was able to restructure a large block of debt, while it has also switched an order for 787-8s to 777-300ERs.
“Our debt restructuring is almost complete and we’re looking to go public by mid this year. We plan to raise approximately US$300m (A$342m) which will be used to support our long term growth plans,” said Garuda CEO Emirsiyah Satar.
The IPO is expected to take place in the second half of the year, with a listing on the Jakarta Stock Exchange the most likely scenario.
Garuda is planning to take delivery of 23 Boeing 737-800s and one A330-200 during 2010, with plans to add a number of new domestic routes and additional frequencies across its network. The Indonesian carrier is also planning this year to start services from Jakarta to Amsterdam via Dubai, while it plans to launch nonstop European services in 2011 when it takes delivery of its first 777-300ERs.
Meanwhile, Garuda has also confirmed that it has cancelled orders for 10 787-8s placed in 2005, with the commitment switched across to 777-300ERs. “We simply couldn’t wait for the 787,” said Satar.