Aceh Claims Dividends from Garuda's IPO

"We hope we will get an additional fund of around US$300 million to expand our business," Pujobroto said at the Coordinating Ministry for Economic Affairs in Jakarta recently.

He said Garuda plans to buy 11 planes this year as part of efforts to develop its business.

"In 2010, we bought a total of 24 planes. This year we plan to buy 11 more planes," he said.

The addition of planes was also designed to develop the fleet of Citilink, Garuda’s low-cost flight division, he said. According to the IPO’s prospectus, Garuda plans to buy 10 Boeing 737-800 NG aircraft, six Airbus A330-200 aircraft, five narrow-bodied aircraft for its subsidiary Citilink, and five Sub-100 aircraft.

Garuda President Director Emirsyah Satar said earlier that the IPO was expected to inject Rp10 trillion in funds to the airline. In the IPO Garuda would sell 28.93 percent of its shares. The IPO would also include the sale of state-owned Bank Mandiri’s 7.54 percent stake in the airline.