Jakarta. Garuda Maintenance Facility Aero Asia — GMF Aero Asia for short, a subsidiary of flag carrier Garuda Indonesia, has appointed underwriters for an initial public offering that may take place in the third or fourth quarter this year, the company's president director said on Monday (12/06).
The company appointed BNI Sekuritas, Bahana Sekuritas, Danareksa Sekuritas and Mandiri Sekuritas as underwriters for the upcoming IPO projected to take place in September or October.
GMF Aero Asia President Director Iwan Joeniarto said the company is seeking to raise up to $300 million from the IPO, but that figure is still subject to approval from shareholders.
He said the company plans to sell 20-30 percent of its shares in the IPO and will use its first quarter financial report for it.
"We hope to list on the IDX [Indonesia Stock Exchange] by the end of September," he told reporters on Monday at Garuda Indonesia's headquarters in Central Jakarta
Iwan said the company will use the IPO proceeds for business expansion, including updating the technology on its maintenance, repair and overhaul (MRO) facility. GMF Aero is also seeking a strategic partnership with international investors to expand its business.
As has been reported, GMF is targeting to book $454 million in revenue this year, a 17 percent increase from last year's $387 million.
The bulk of GMF Aero Asia's business is providing maintenance for Garuda Indonesia's fleet. It also offers engineering and maintenance services for other airlines, both local and international.