Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Garuda's IPO Fails to Impress Investors
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Garuda's IPO Fails to Impress Investors

Poor Response to Garuda Indonesia's IPO May Leave Plans to Settle Debt and Fund New Armada Underfunded.


Bali News: Indonesia, Garuda, IPO, Mustafa Abubakar
Click Image to Enlarge

(2/14/2011)

World-wide promotion and an extensive advertising campaign failed in the end to impress investors purchasing shares during the launch of the initial public offering (IPO) of the state-owned national carrier Garuda Indonesia.

According to the Jakarta Globe, Garuda opening price fell 23 percent to Rp. 580 (US$0.06) from its opening offered price of Rp. 750 per share. At the end of the first day of trading Garuda's share price stood at Rp. 620, down 17%.

The lackluster opening must serve as something of an embarrassment for Indonesia's Minister of State Enterprise, Mustafa Abubakar, who had overridden the suggestions from underwriters for a price range of Rp. 560 to Rp. 850, insisting that for "reasons of national pride" the airline's the valuation should fall between Rp. 750 to Rp.1,100.

Unfortunately, the Ministers optimism was detached from the currently bearish market sentiment that had adversely affected other recent IPOs, poor financial results recently released for the airline, and a comparative case analysis which questions the airlines financial performance among a competitive circle of regional airlines.

The Minister was quick to dismiss the poor debut for the IPO, saying, "it's not unusual that Garuda's shares would plunge because the market is bearish." The Minister expressed his conviction that Garuda's performance over the coming six months would raise the share value of the airline.

On a practical level, the tepid response to Garuda's IPO may see the national carrier raise something less than US$540, a figure far short of the optimistic initial projection of Rp. 10.3 trillion (US$1.14 billion) which would have allowed Garuda to retire a large part of its current debt burden and provide needed cash to fund the fleet expansion required to recommence full European and U.S. services.

Related Article

[Garuda IPO Failing to Soar]


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

       

 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
A Gas Attack?
Explosive Sewage System at Paragon Hotel in Jimbaran Sends two Staff Members to Hospital
(6/25/2016)
India Calling
Bali Calls for Direct Flights Between India and Bali
(6/24/2016)
RIP: Raymond Maurice Butler 1952-2016
Ray Butler, Bali Hotel Veteran Dies from Prolonged Illness at Siloam Hospital
(6/24/2016)
Keeping the Islamic New Year Safe
Bali Boosts Security for Idul Fitri Holiday Rush
(6/24/2016)
Bali Bounces Bogans Back to Base
Badly Behaving Drunken Perth, Australia Man Deported from Bali Just 24-Hours After Arrival
(6/24/2016)
LOT Polish Now Flies to Bali
Twice-Weekly Warsaw to Bali Flights on LOT Polish Airlines Commence Service to Bali
(6/24/2016)
Misinformation as a Virus
Bali Hotel Association Brands Australian Government and Australian Media Statements on Zika Virus as “Hype”
(6/24/2016)
Home for the Holidays
Bali’s Ngurah Rai Airport Adding Additional Flights for Idul Fitri Holidays
(6/24/2016)
Quest No More
Woman Commits Suicide by Leaping from Quest Hotel in Kuta
(6/24/2016)
A Rockin’ Middle Age
Hard Rock Hotel Bali Celebrates Founder’s Day With Beach Clean Up & Turtle Release
(6/24/2016)
They Shall Not be Moved
ForBali Protestors Stage Another Mass Demonstration Against Reclamation of Benoa Bay, Vowing Recent Physical Attacks Will not Deter their Protests
(6/19/2016)
Garuda Doodle Dandy
Garuda Indonesia Plans to Fly to USA in 2017
(6/19/2016)
All [News]!