PT Garuda Indonesia is pushing PT Garuda Maintenance Facility (GMF) AeroAsia, one of its subsidiaries, to release some of its shares to the public through the Initial Public Offering (IPO) scheme.
“As shareholders, we aspire to strengthen the subsidiary’s capital, and one of the efforts is through the IPO,” CEO of Garuda Indonesia Arif Wibowo stated in Jakarta, Monday.
He further stated that GMF AeroAsia, which operates in the field of integrated aircraft maintenance and repair services, holds huge business potential, as it has a strong capital already. “It is currently one of the biggest Maintenance and Overhaul companies in Asia, especially in South-East Asia,” he noted.
He estimated that a total 20 percent of the company’s shares will be released to the public, and it is hoped to materialize this year, as it will contribute to the Indonesian economy.
“We hope that the IPO would take place in 2017 and next year, as it would be the best milestone for our economy,” he remarked. In terms of non-organic aspects, the company can grow even faster if several measures are taken, including undertaking joint ventures or acquiring some repair stations locally or globally.
“By releasing 20 percent of its shares, GMF AeroAsia will already be able to grow non-organically, while organic growth will depend on the entire advancement of Garuda Indonesia.” He also pointed out that PT Garuda Indonesia will add nine more aircraft this year, which will support not only operational activities but also its other subsidiary company, Citilink.
“Five Airbus 320 aircraft will be added to further advance Citilik, which is hoped to boost its domination in the domestic market, especially in the middle- to lower-class segment. A Boeing 737 MAX and three ATR aircraft will also be added to the fleet.”