SOE advises Garuda to enter bourse in Q1

The state ministry of state enterprises has suggested national airline PT Garuda Indonesia issues shares through an initial public offering (IPO) in the first quarter of 2011.

State Minister for State Enterprises Mustafa Abubakar told reporters Monday that it was likely Garuda would choose the first quarter of next year for its IPO.

"I offered Garuda to either sell their stake through an IPO this year or in the first quarter of next year," Mustafa said.

Mustafa said he had advised Garuda to issue shares in the first quarter of next year because the company's recent financial report was good enough to ask for a high share price.

"I believe the December financial report will be better because Garuda will have enjoyed the peak season," Mustafa said.

Garuda posted a loss of Rp 39.51 billion (US$4.4 million) in the third quarter of this year after opening several international routes.