JAKARTA: Ministry of State-Owned Enterprises (SOE) expected that the stock price of PT Garuda Indonesia (Persero), Indonesias flag carrier airline, in initial public offering (IPO) will be around IDR1,000 per share.Minister of SOE Mustafa Abubakar said that the ministry will set the most appropriate price in Garudas IPO, considering demands from the market and the company performance.We expect that Garuda IPO price will be at IDR1,000 per share. But the final price will be stated by the underwriters and the company, he said yesterday.Mustafa disclosed that the stocks issued in IPO include those belonging to PT Bank Mandiri (Persero) Tbk, with portion as much as 10.61%.In the meantime, concerning the portion for local and foreign investors, Mustafa expected that the portion for local investors is bigger, and he supposed that the portion will be 70% for local investors and 30% for foreign investors.Mustafa reiterated that the portion for foreign investors must not be eliminated, considering the chance to make international business development.International investors are needed, to improve image and to evaluate. It makes us more confidence if our stocks can attract foreign investors. We can go international, he revealed.The portion of shares released for public remains the same, around 30% in the first stage, including the 10.61% shares belonging to PT Bank Mandiri Tbk, according to him.We will still release around 30% in the first stage, and 10% in the following stage. The strategy runs gradually. Condition of the market is volatile, and it is normal. Garudas performance also goes up and down, depending on the season. Who knows that in the secondary offering it will be better, he said.Meanwhile, according to data compiled by Bisnis, of 25.7 billion shares that Garuda will release, 9.3 billion, or 36.18% will be offered to public.Previously, it was reportedly said that the price would be around IDR483.87 per unit, and the target fund would be as much as US$500 million, or IDR4.45 trillion.However, Deputy Infrastructure and Logistic in Ministry of SOE Sumaryanto Widayatin stated that the target fund to be raised is within the range of US$300 million to US$350 million.The needed fund is between US$300 million and US$350 million. We dont need more than that. Then, why do we seek for US$500 million? he said.Road show to 4 countriesPresident Director Garuda Emirsyah Satar last week mentioned the destinations of the road show, including Singapore, Hong Kong, London, Boston, and New York.For the IPO, Garuda uses its third quarter/2010 financial report. Through the period, the company posted net income as much as IDR194.9 billion, an improvement after a reported loss earlier.Emirsyah claimed that the company had never published any financial data showing the company loss. What is certain is that through September 2010, we posted net income as much as IDR194.9 billion. But we have not completed the full-year performance, he continued.Garuda has appointed local underwriters, i.e. Danareksa Sekuritas, Bahana Securities and Mandiri Sekuritas, to handle the IPO. Meanwhile, the foreign underwriters chosen by the airline are Citigroup and UBS.Based on a research report from Mandiri Sekuritas received by Bisnis, Garuda earned IDR20 trillion last year, with net income as much as IDR459 billion. Thus, the margin net profit was considered low, not more than 2.29%.During the period 2007-2012, the annual growth of revenue from passenger tickets is estimated at 14.8%. Moreover, other income from cargo business, pilgrimage service, maintenance services and travel agency is expected to grow by 12.2%. (t04/wiw)

Cek Berita dan Artikel yang lain di Google News dan WA Channel

---

Artikel Terkait

Berita Lainnya

Berita Terbaru