AirAsia Indonesia to go public
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AirAsia Indonesia has announced that it will float on the Indonesian stock exchange. The low-cost carrier, which is a subsidiary of Malaysia’s AirAsia Bhd, has confirmed that Credit Suisse and CIMB Securities will act as underwriters for its initial public offering (IPO), through which it expects to raise up to US$200 million. The shares are expected to begin trading on Indonesian Stock Exchange in the fourth quarter of 2011.
Proceeds from the IPO will be used to facilitate the airline’s planned fleet expansion, as well as to augment its working capital. AirAsia Indonesia will also make shares available to its employees.
“We also wish to further enhance our brand recognition and corporate profile,” said Dharmadi, President Director of AirAsia Indonesia. “Our IPO will mark the success already achieved by AirAsia Indonesia as the leading regional aviation player in the low-cost category.”
Dharmadi added that Indonesia’s healthy economic expansion provides the airline a massive growth opportunity.
“General outlook on the Indonesian economy remains positive in 2011; propped up by strong consumer spending, commodity exports, investments, and rising incomes. Indonesia archipelago, being the largest island complex in the world with a population of over 240 million, makes an attractive market for air travel. We are in a prominent position to further expand our business,” he said.
AirAsia Indonesia is the latest in a series of carriers from the country to announce plans to go public. National carrier Garuda Indonesia floated earlier this year, raising an estimated US$535 million to fund its expansion plans, and Jakarta-based Lion Air is also planning an IPO in 2012.
AirAsia Indonesia has been operating for six years, and posted a net profit of IDR474 billion (US$53.7 million) in 2010 – a 351% year-on-year increase.
“We will continue to strengthen our international dominance in the market… [and] are confident that our robust financial performance and stability, combined with the right future growth strategies, will whet investors’ appetite,” concluded Dharmadi.
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