Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Garuda's IPO Fails to Impress Investors
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Garuda's IPO Fails to Impress Investors

Poor Response to Garuda Indonesia's IPO May Leave Plans to Settle Debt and Fund New Armada Underfunded.


Bali News: Indonesia, Garuda, IPO, Mustafa Abubakar
Click Image to Enlarge

(2/14/2011)

World-wide promotion and an extensive advertising campaign failed in the end to impress investors purchasing shares during the launch of the initial public offering (IPO) of the state-owned national carrier Garuda Indonesia.

According to the Jakarta Globe, Garuda opening price fell 23 percent to Rp. 580 (US$0.06) from its opening offered price of Rp. 750 per share. At the end of the first day of trading Garuda's share price stood at Rp. 620, down 17%.

The lackluster opening must serve as something of an embarrassment for Indonesia's Minister of State Enterprise, Mustafa Abubakar, who had overridden the suggestions from underwriters for a price range of Rp. 560 to Rp. 850, insisting that for "reasons of national pride" the airline's the valuation should fall between Rp. 750 to Rp.1,100.

Unfortunately, the Ministers optimism was detached from the currently bearish market sentiment that had adversely affected other recent IPOs, poor financial results recently released for the airline, and a comparative case analysis which questions the airlines financial performance among a competitive circle of regional airlines.

The Minister was quick to dismiss the poor debut for the IPO, saying, "it's not unusual that Garuda's shares would plunge because the market is bearish." The Minister expressed his conviction that Garuda's performance over the coming six months would raise the share value of the airline.

On a practical level, the tepid response to Garuda's IPO may see the national carrier raise something less than US$540, a figure far short of the optimistic initial projection of Rp. 10.3 trillion (US$1.14 billion) which would have allowed Garuda to retire a large part of its current debt burden and provide needed cash to fund the fleet expansion required to recommence full European and U.S. services.

Related Article

[Garuda IPO Failing to Soar]


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

   

 
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Fire in East Denpasar
Fire Destroys 7 Shop Houses in East Denpasar, Bali
(12/20/2014)
Mantra for Difficult Times
Australian Mantra Hotel Group Scales Down its Plans in Tough Bali Marketplace
(12/20/2014)
Be Prepared
Bali Identifies Areas at Risk of Natural Disaster and Maps Plans to Minimize Destruction
(12/20/2014)
When Sleighs Wonít Do
Bali Airport to Operate 134 Extra Flights Over Christmas and New Year Period
(12/20/2014)
When a Bay Becomes a Quagmire
Editorial: We Support Jakarta Globe Call for President Joko Widodo to Cancel the Benoa Bay Reclamation
(12/20/2014)
4.25 Million Foreign Tourists to Bali in 2015
Bali Seeks to Add 500,000 Tourist Visitors in 2015
(12/20/2014)
That Takes the Lot!
Baliís Tanah Lot Temple Experiencing a Record Number of Visitors Leader Up to Year End Piodalan Ceremony
(12/19/2014)
Shanghaied No More
Singaraja, Bali Immigration Office Deports 282 Foreign Workers in 2014
(12/19/2014)
Different Strokes Apply in Bali
Pendawa Beach Visitors in Bali Reminded that Sexual Activity and Swimming While Menstruating are Not Allowed
(12/19/2014)
Bali Non-Stop to Cairn, Australia
JetStar to Fly Direct Three Time a Week Cairns to Bali Flights Starting in March 2015
(12/19/2014)
Symphony of Feeling
Solo Exhibition of Paintings by Mochammad Toha Hasan, January 19 - March 12,2015 at Ganesha Gallery at Four Seasons Resort Bali at Jimbaran Bay
(12/19/2014)
Imagine That
Hard Rock Imagine a Better World and Raises Smile and Funds for Indonesian Children
(12/19/2014)
All [News]!