Indonesia’s Lion Air has started preparations for a domestic initial public offering, according to people with knowledge of the matter.
Lion Air is reportedly working with advisers on the planned sale this year. The sources added that the airline is aiming to raise around USD 1 billion. Details for the upcoming are still scarce since the information is still private.
The airline is setting up preliminary meetings with investors this week to sound out early interest ahead of the potential deal. The company will decide whether to proceed with the IPO after seeking the feedback of investors. The airline is targeting its public offering after next month’s election.
Lion Air’s floated the idea of IPO since 2005; however, the airline delayed the plan multiple times due to a flagging Indonesian economy and other issues.
Lion Air has been involved in multiple safety scandals last year, including the fatal crash of Lion Air flight JT610 claiming 189 souls on board in October 2018. As further investigations progress, it shows that the Boeing 737 Max 8 planes may have been at fault. Indonesian investigators are seeking to conclude their final report on the crash by August. Through the IPO, Lion Air is putting the past behind them.
