The tourism area of Lagoi in Bintan, Riau Islands, will soon have a new airport. (GA Photo/Mohammad Defrizal)

Indonesia's Sriwijaya Air Plans March Equity IPO


SEPTEMBER 26, 2016

Jakarta. Indonesian airline operator Sriwijaya Air plans to launch an initial public offering (IPO) of equity shares in March, owner and group chief executive Chandra Lie told reporters on Monday (26/09).

Sriwijaya Air's plan to go public next year comes as domestic rival Lion Air, the country's biggest budget carrier, is also considering floating its shares on the stock market.

Lie declined to disclose the size of the planned share sale. He said bankers for the IPO have been appointed but declined to name them.

"We are preparing. We will make sure this company is good and fit [for an IPO]," vice director of finance Lukcimo Jahja told reporters separately.

Sriwijaya Air, which is categorized as a medium-service airline, has a current fleet of 54 airplanes. It has ordered three Boeing 777-200s to cater to flights for Indonesian haj pilgrimage travelers, which will start arriving next year, Jahja said.

Without disclosing the amount, Jahja said the company saw significant revenue increase last year due to flight route expansion, including an additional flight to China.

Sriwijaya Air carried more than 800,000 passengers per month, according to its website. In comparison, flag carrier Garuda Indonesia and its subsidiary carried more than 2.7 million passengers per month in 2015.