Jan 4, 2011

Garuda sets 36.5% IPO, eyes US$500m

Airlines company PT Garuda Indonesia unveils 36.5% stake initial public offering (IPO) or 9.3 billion shares with a target proceed of up to US$500 million.
UBS and Citi are international book runners, while three lead underwriters Bahana Securities, Danareksa Sekuritas, and Mandiri Sekuritas help Garuda IPO.
In a company report from Mandiri Sekuritas obtained today, Garuda's revenue last year is estimated to reach Rp20 trillion, Rp24 trillion in 2011, and Rp28 trillion in 2012. Garuda has solid top-line growth at 14.8% CAGR07-12F.
"We estimate Garuda’s revenue will grow from Rp14.0 trillion in 2007 to Rp28 trillion in 2012F or equivalent to CAGR07-12F of 14.8%. More specifically, we expect the main drivers of revenue growth to come from growth in domestic passenger revenue with 16.0% CAGR07-12F, followed by international passenger revenue with 15.4%."
Mandiri Sekuritas conservatively assumes other revenue to grow by 12.2% CAGR07-12F. Note that other revenues contributors are cargo business, Haj and charter flights, and other services such as travel agent, maintenance services, etc.
Garuda's net profit by end of 2010 is estimated to reach Rp459 billion, Rp761 billion in 2011, and Rp1.02 trillion in 2012.

Disclosure: No position at the stock mentioned above.

Print This Article

No comments: