Garuda to raise $476 mln in IPO, priced at 750 rph/share

PT Garuda Indonesia, the nation's flag carrier, is set to raise 4.301 trillion rupiah ($476 million) from an initial public offering in February, less than expected after setting a share price of 750 rupiah, a government minister said on Wednesday.


The share price was at the bottom of the 750-1,100 rupiah initial range set two weeks ago after weak demand as foreign investors were scared away by the the offer's rich pricing.
The firm will sell 5.735 billion new and existing shares, down from earlier plans to sell 9.362 billion shares, said state enterprises minister Mustafa Abubakar.

The price level and cut to the offering size, confirming a Reuters story on Tuesday, showed Garuda Indonesia's hopes for a high-flying $1.1 billion IPO have failed to get off the ground.
After a surge in interest in Southeast Asia's largest economy last year and a recovery in the global airline industry, appetite for the Garuda deal has sharply fallen.

Garuda's IPO is the first of a slew of state enterprises due for flotation this year and will also be closely watched by flag carrier Vietnam Airlines, which is planning to go public this year. ($1 = 9036.5 Rupiah). Source: Reuters