Jan 25, 2011

Garuda downsizes IPO to Rp4.7 trio

PT Garuda Indonesia Tbk has finally downsized the IPO size nearly 50% to Rp4.7 trillion proceed from the initial target of Rp7.02 trillion with the final price of Rp750 per share. Garuda will bag Rp3.2 trillion cash from the IPO and PT Bank Mandiri will obtain about Rp1.4 trillion.
Initially, Garuda plans to sell 9.36 billion shares or 36.5% shareholding at the price range of Rp750-Rp1,100 per share.
A source said as the market demand is weak, Garuda and Government have finally decided the IPO size to 6.27 billion shares or 24.4% from 9.36 billion shares or 36.5% stake.The final price is reflecting 74.04x annualized of price to earning ratio (P/E) last year, which is so expensive.

Disclosure: No position at the stock mentioned above.

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