Indonesia’s Garuda Maintenance Facilities set IPO Prices Rp390 to Rp510

JAKARTA (TheInsiderStories) – PT Garuda Maintenace Facilities Aerowisata (GMF), a unit of state-owned airlines operator PT Garuda Indonesia Tbk (IDX: GIAA), has set its initial public offering (IPO) price between of Rp390 to Rp510 per share.

The company is offering 20 percent of its total enlarged capital or 6.35 billion shares through IPO and 10 percent for strategic investor. GMF expects to raise up to Rp3.24 trillion (US$243.57 million) from the IPO with proceeds aimed to support expansion of its maintenance services to promising international market.

Timetables for the IPO: book-building period Sept. 11 to 21, effective date Sept. 28, offering period Oct. 2 to 4, allotment date Oct. 10 and listing at Indonesia Stock Exchange on Oct. 10.

Acting as underwriters for this IPO are PT Mandiri Sekuritas, PT Bahana Sekuritas, PT Danareksa Sekuritas and PT BNI Sekuritas, while CIMB Securities will lead international sales.

Pahala N. Mansury, President Director of GIAA said, the company will offer the other 10 percent shares to strategic investors. Currently, he added, around five investors showed their interest to acquire the GMF’s shares.

“We will discuss more with them on the price. So far five investors has showed their interest to become strategic partner of GMF,” He told The Insider Stories.

President Director of GMF Iwan Joeniarto, said the maintenance, repair and overhaul (MRO) provider wants to become the 10th largest of MRO operator in the world from currently in the 13th rank.

This year, GMF aims to achieve $454 million in revenue, with a $69 million net profit which has risen after taking in $387 million in 2016 with a $58 million profit.

GMF assets were recorded at $452.56 million per March 2017, higher than Citilink’s $355.54 million in assets. Its outstanding loans stood at $15.18 million, with outstanding balance at $6.04 million.

Burgeoning business has attracted the commitment of GMF, in line with significant growth in the aircraft maintenance market. One capacity enhancement will be in the Batam facility, benefiting from GMF access to Singapore, the aviation center in Southeast Asia.

In October 2016 GMF becomes an officially bonded center, opening the opportunity for GMF to expand its bonded center in Batam. The island is considered the correct place to expand the business, supported by the government.

As a blueprint of expanding its business in Batam, GMF has also indicated it is open for partnerships, pointing to its partnership with PT Merpati Maintenance Facility (MMF) for General Aviation Maintenance in Eastern Indonesia, particularly in Manado and Biak.

Based at Jakarta Soekarno-Hatta International Airport, GMF AeroAsia counts internationally-renowned airlines from more than 55 countries around the world among its clients.

Recently, GMF manage four hangars and land areas 970,000 square-meters in Cengkareng, Banten province. According to Joeniarto, MRO services growth still promising, this year will rise around 9.4 percent in the region and Indonesian market is estimating to reach $1.6 billion in 2021. (CS)

Writing by Linda Silaen, Email :