Garuda Maintenance Facility to Go Public: What Will Its Revenue Be?

Garuda Maintenance Facility Aero Asia Tbk (GMF) will conduct an Initial Public Offering (IPO). Up to 10.89 billion new shares will be offered to the public, representing 30 percent of the issued and paid-up capital after the IPO. This subsidiary of PT Garuda Indonesia Tbk is offering shares at a price of Rp 390-510 per share, with the offering period running from September 11-21, 2017.

According to GMF's annual report, the company's revenue has steadily increased since 2012. In 2016, revenue for the Indonesian aircraft maintenance, repair, and overhaul (MRO) services company grew by 27 percent to US$ 388.66 million (equivalent to Rp 5.2 trillion) compared to the previous year. In the first half of 2017, revenue also grew by 14.7 percent compared to the first half of the previous year. GMF's revenue contribution to its parent company is currently only 3.4 percent of the total revenue from all Garuda subsidiaries.

The IPO is targeted to raise between Rp 4.24-5.5 trillion. Of this amount, 60 percent will be used for expansion, 25 percent for operational activities, and the remainder for debt refinancing.