Feb 10, 2011

Lion Air eyeing US$1 billion IPO in 2012

PT Lion Mentari Airlines, the operator of Lion Air, plans to get listed in the stock market in the middle of next year, releasing 30% shares to generate US$1 billion.
President Director Lion Air Rusdi Kirana said the initial public offering (IPO) proves the stability of the company’s economic condition.
“By conducting an IPO, Lion Air shares belong not only to Kirana Family, so it will be more accountable. At the latest, IPO will be in the first quarter of 2013,” he said as reported by Bisnis.com today.
He is optimistic that in 2012 the airline will obtain 65% of total airline passengers, which is predicted to reach 60 million people at that time.
“If our market share reaches 65%, there will be political power. Therefore, we make an IPO, and the responsibility is not only on the hand of Kirana Family. Basically, the IPO is to make sure that the company does not collapse,” he exposed.
Rusdi said that the fund of US$1 billion will not be allocated for developing the business, but for reserves.
“For expansion, we have the commitment of loan from three banks, namely US Exim, BNP Paribas, and DFB from Germany,” he revealed.

Disclosure: No position at the stock mentioned above.  

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