PT Garuda Indonesia plans to make an initial public offering (IPO) of its shares early in 2009 as part of the Company's overall restructuring program.
Speaking to the press, the CEO of Garuda Emirsyah Satar, said: "the privatization option via an IPO will take place next year, although the actual process is in the hands of the Minister for State-Owned Enterprises as the Chief shareholder of Garuda."
The details of the IPO are currently being discussed by the Airline's management and its director. Among the items on that agenda include the actual number of shares to be offered to the public. "The management view is that no more than 51% of the Company's shares should be put on offer," added Emrisyah.
Emrisyah used his meeting with the press to highlight how Garuda's financial performance is demonstrating real improvement, recording a Rp. 258 billion (US$27.9 million) profit in 2007. This is a dramatic turn around from the three consecutive years of substantial losses booked in 2004 (Rp. 811.3 billion), 2005 (Rp. 688.4 billion) and 2006 (Rp. 197 billion).
Adding further merriment to the atmosphere of Garuda's board room are estimates that the Airline is projecting a Rp. 516 billion (US$55.8 million) profit for the entire year of 2008. Garuda is citing increased seating capacity, improved efficiency and a widening market as the main forces behind its improving fortunes.
Garuda has signed agreements for the lease of 50 Boeing 737-800 slated for delivery in 2009 and 10 Boeing 777-30ER slated for delivery in 2010.
Prior to the 2009 IPO Garuda is hoping to have successfully renegotiated its debt of more than US$800 still owed to European creditors.
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