Indonesia’s GMF AeroAsia raises $95m in IPO, far less than planned

An employee counts U.S. dollar banknotes at a foreign exchange house in Ciudad Juarez, Mexico, November 8, 2016. REUTERS/Jose Luis Gonzalez

Indonesia’s Garuda Maintenance Facility AeroAsia (GMF AeroAsia) has raised just 1.27 trillion rupiah ($95 million) from its IPO, IFR reported, substantially less than what the maintenance subsidiary of PT Garuda Indonesia Tbk had hoped for.

GMF AeroAsia had intended to garner as much as 5.55 trillion rupiah in the initial public offering (IPO), with planned sales of a maximum of 10.9 billion shares within a range of 390-510 rupiah per share.

IFR, a Thomson Reuters publication, said GMF AeroAsia priced the IPO at 400 rupiah per share on Tuesday, close to the bottom end of the indicated range. IFR cited two people with knowledge of the transaction.

The company decided to sell only 10 percent of its stake through the IPO, half the originally planned 20 percent, IFR said.

GMF AeroAsia had also been seeking to sell an additional 10 percent stake to strategic partners as part of the process. It is not clear where that plan stands now.

Pahala Mansury, the CEO of parent company Garuda Indonesia, declined to comment on the report. GMF AeroAsia was not immediately available for comment.

Indonesia’s IPO market has struggled in the last few years due to high valuations and worries about economic growth in Southeast Asia’s biggest economy. But companies there were boosted by the mid-May upgrade to the country’s credit rating to investment grade by Standard & Poor’s, which gave them an opportunity to raise funds on better terms.

GMF AeroAsia had also been seeking to bring in strategic partners as it looks to build a new maintenance facility at Batam Island near Singapore and increase the proportion of work it does for customers other than Garuda.

Earlier this month, Air France Industries KLM Engineering & Maintenance (AFI KLM) said in a statement that it has signed a letter of intent with GMF AeroAsia to “move up” their longstanding partnership. However, to date AFI KLM has not announced an investment in GMF AeroAsia.

Also Read: 

Indonesia: GMF AeroAsia allocates 10% for strategic investor in IPO; raises target to $422m

Exclusive: Indonesia’s GMF AeroAsia sets capex at $400m to hit $1b revenue by 2022

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.