Mandiri Sekuritas, Danareksa Sekuritas and Bahana Securities have been hired to handle a rights offering for Garuda Indonesia, the country’s flag carrier, in the first half of next year, according to a source with knowledge of the matter.
The Jakarta-based airline operator is expected to raise $200 million from the offering, Investor Daily reported, citing the source. Garuda, which had its initial public offering in 2011, plans to sell 10 percent of its shares in the deal.
Handrito Hardjono, Garuda’s finance chief, declined to confirm the news, stating that information on the underwriters could not be released until the State-Owned Enterprises Ministry approved the plan. Garuda is one of 142 state companies supervised by said ministry.
Handrito did, however, confirm the offering will be conducted in the first half of 2014. The hiring of underwriters would be announced in the near future, he added.
The same three brokerage firms mentioned by the source were hired for Garuda’s IPO in early 2011.
Mandiri Sekuritas, the brokerage unit of Bank Mandiri, is Garuda’s financial advisor.
Garuda is looking for sources to finance its various expansion plans.
Earlier this month, Garuda secured $200 million in loans from Bank Central Asia and other lenders. In October, it secured $1.7 billion in loans from the Industrial and Commercial Bank of China.
Through its “Quantum Leap” program, the company intends to operate up to 194 planes by 2015. Garuda has announced that it will acquire 24 new planes this year, as well as opening 17 domestic and five international routes.
In 2012, Trans Airways, owned by Chairul Tanjung’s CT Corp., bought a 10.9 percent stake in the company.
The airline will finalize plans by year-end and seek board approval next year to order another 200-250 planes, taking its fleet to 350-400 aircraft by 2025, chief executive Emirsyah Satar told Reuters in November.
Garuda had 131 planes as at September-end, which its order book will take to 194 by 2015. The expanded fleet will be used by Garuda and low-cost subsidiary Citilink, Satar said.
The airline plans to buy some of the 200-250 planes from manufacturers and lease the remainder, reducing pressure on its balance sheet.
Shares of Garuda Indonesia closed unchanged at Rp 490 on the Indonesia Stock Exchange (IDX) on Wednesday.