AirAsia names 2 underwriters for IPO

The Jakarta Post, Jakarta | Tue, 03/01/2011 12:01 PM | Business

Budget airliner PT Indonesia Air Asia (IAA) has nominated two underwriting companies to handle its initial public offering plan, a company executive said on Tuesday.

IAA vice president commissioner Sendjaja Widjaja said the underwriters would provide their assessments of the best offering share price.

"We've decided to appoint two underwriting companies,” Sendjaja said Tuesday, as quoted by tribunnews.com.

Sendjaja, however, declined to name the two companies.

“Our president commissioner [Tony Fernandez] will officially announce the names either today or tomorrow,” he said.

Earlier, Sendjaja said IAA planned to carry out the IPO in the second semester of this year.

Currently, the lion's share of IAA is in the hands of Malaysia-based AirAsia Berhad, which holds a 49 percent stake, and the remainder with local shareholders, including Sendjaja Widjaja (21 percent), Harris Family (Pin Harris) with 20 percent, and trading company PT Fersindo Nusaperkasa (10 percent).

Indonesia AirAsia formulating IPO plans

The Jakarta Post, Jakarta | Mon, 01/24/2011 11:30 AM | Business

Indonesia AirAsia (IAA) president commissioner Sendjaja Widjaja on Sunday said the company would continue with plans to go public, to inject fresh capital needed to fuel IAA's fleet expansion plans.

"IAA shareholders are currently working on plans for the IPO [initial public offering], and we hope we will be ready to offer our shares publicly by the second semester of 2011", Widjaja said as quoted by kompas.com.

"The capitals we hope to gain from this will be used to cover our operational costs and to purchase two new Airbus A320 aircraft, but this plan is still a draft plan that has not been finalized, as there have been talks about purchasing five aircraft instead of just two — in order to comply with Indonesian Aviation Regulation No.1, 2009," Widjaja said.

The regulation requires operators to own a minimum of five aircraft in 2012. IAA currently operates 11 Airbus A320-200 and four Boeing 737-300, but all of these aircraft are leased.

"We are still deciding which underwriter company to use. The selection process has been going since December 2010, and we aim to have chosen an underwriter by February 2011. We want a large, international and committed company to do this job as they will determine the value of the shares and amount [of shares] we can offer,” Widjaja said.

For it to continue operating in Indonesia, Indonesia AirAsia will need to raise US$ 424.5 million (Rp 3,843 trillion) to purchase five aircraft.