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.

       

 
Plaga Wine
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
When Meeting Planners Meet
‘Thank You’ Party held for Members of the Bali MICE Initiative
(2/7/2016)
A Record Year
Bali by the Numbers: Bali Tops 4 Million Visitors in 2015
(2/7/2016)
Enter the Year of the Monkey
Bali Expecting a Surge in Chinese Visitors for Lunar New Year
(2/7/2016)
When Helping Others is Highly Fashionable
Bali Smile Foundation Fashion Show Sales and Fund Raiser in Ubud, Friday, February 26, 2016
(2/8/2016)
The Evil of Advertising
Denpasar Government Begins to Dismantle Roadside Advertising for Cigarettes
(2/7/2016)
Reclaiming Sanity
Tourism Experts Warn Reclamation of Benoa Bay will Only Worsen Critical Over-Supply of Hotel Rooms in Bali
(2/7/2016)
Interview: Rainy Hendriany – Foreign Ownership Update
Foreign Property Ownership in Indonesia – One Step Forward and Two Steps Back?
(2/8/2016)
Half a World is Now Just One Flight Away
United Airlines to Introduce 15-Hour Non-Stop San Francisco to Singapore in June 2016
(2/7/2016)
London Calling
Garuda Indonesia to Fly to London from Jakarta Starting March 31, 2016
(2/7/2016)
Drawing Lines in the Sand
Villagers Issue Deadline Ultimatum of March 20, 2016 to Hotel InterContinental Canggu
(2/7/2016)
Pass the Popcorn!
10th BALINALE Bali Film Festival September 24-30, 2016
(2/7/2016)
Tiger Shows it Stripes
TigerAir Reveals the Look of Planes to be Operated on Oz to Bali flights.
(2/7/2016)
All [News]!