After a 6-Month Suspension, Garuda's Shares Now Face Delisting

The Indonesia Stock Exchange (IDX) has issued a warning regarding the potential delisting of PT Garuda Indonesia (Persero) Tbk shares from the main board. This warning is contained in Exchange Announcement No. Peng-00024/BEI.PP2/12-2021.

Trading of the shares of the Indonesian government-owned airline, with the trading code GIAA, has been suspended since June 18, 2021. This means that GIAA shares have been suspended from trading on the Indonesia Stock Exchange for approximately 6 months.

One reason for the suspension of GIAA trading is the delayed payment of a matured global sukuk coupon.

The issuer, whose majority shares are owned by the government, is experiencing a financial crisis. Up to Q3 2021, GIAA recorded a loss of US$1.66 billion, or approximately Rp 23.78 trillion (using an exchange rate of Rp 14,307 per US$). Its equity is also negative at US$3.6 billion (Rp 51 trillion), with total liabilities reaching US$13.03 billion (Rp 186 trillion). Assets, meanwhile, stand at US$9.42 billion (Rp 134.79 trillion).

For information, Garuda held its Initial Public Offering (IPO) at a price of Rp 750 per share on February 11, 2011. The number of shares offered to investors totaled 6.34 billion (27.98%) of the total 22.64 billion shares listed.