GARUDA will use most of the funds generated from its upcoming Initial Public Offering to grow its fleet, according to president and CEO Emirsyah Satar.
With up to 9.32 billion shares being released to the public at a price between 750 (US$0.83) and 1,100 rupiah per share, the airline will gain between 6.97 (US$774 million) and 10.23 trillion rupiah from the public listing on the Indonesia Stock Exchange, scheduled to take place February 11.
According to the IPO prospectus, Garuda plans to use 80 per cent of the funds to buy 10 Boeing 737-800NGs, six Airbus 330-200s, five narrow-bodied aircraft for its subsidiary LCC Citilink, and five sub-100 aircraft to serve ultra-short haul destinations.
WITA Tour sales and marketing manager Rudiana expects Garuda’s next move to be network expansion, especially in Europe and the US.
“Traffic demand for inbound and outbound from Indonesia is on the rise, and other regional and international carriers are enjoying the market at the moment,” he said.
Garuda now operates 84 planes and expects to have a total of 150 aircraft in its fleet by 2015.