Indonesia's flag carrier PT Garuda Indonesia suffered a steep drop in net income during the first 9 months of 2010. Its net income plunged 65.63% to US$22 million from net income in 9M2009.
Garuda consolidated revenue inched up 7% to US$1.42 billion. Revenue from passengers and cargo rose 11.47% and 41.74% to US$1,18 billion and US$95 million.
Fuel cost climbed 28.33% to US$462 million, maintenance and reparation cost increased 20.91% to US$98 million, promotion, sales, and ticketing cost rose 3.7% to US$140 million. EBITDAR slumped 19.03% to US$251 million, while Garuda's total assets slightly declined 1.24% to US$1.59 billion.
The airlines will raise Rp5.57 trillion-Rp8.17 trillion from initial public offering (IPO) of 7.43 billion new B shares and PT Bank Mandiri Tbk will bag Rp1.45 trillion-Rp2.12 trillion cash from the IPO.
In total, Garuda IPO is expected to raise Rp7.02 trillion-Rp10.29 trillion by selling 9.36 billion shares to public investors. Garuda plans to use the proceed for capital expenditure.
Road show is scheduled on January 13- January 24. Garuda final price will be determined on January 25. The company expects to obtain effective approval from Capital Market and Financial Institution Supervisory Board (Bapepam-LK) on January 31.
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