Garuda falls 7% on bourse debut
Esther Samboh, The Jakarta Post, Jakarta | Fri, 02/11/2011 11:10 AM
Shares of state flag carrier Garuda Indonesia immediately fell 7 percent on their debut on the Indonesia Stock Exchange (IDX) on Friday.
The shares (GIAA) opened at Rp 700, their highest level until 10:30 a.m., versus the initial public offering (IPO) price of Rp 750 apiece.
A couple of minutes after market opening, Garuda shares touched a low of Rp 580 but then rebounded to around Rp 630.
State-Owned Enterprises Minister Mustafa Abubakar attributed the drop to recent bearish market conditions, but said “what was important was that Garuda had the courage to list its shares despite such market conditions”.
Garuda president director Emirsyah Satar said despite the poor stock market performance he was satisfied that Garuda had finally become a listed firm.
"The IPO plans have been around since 2000. Finally, the people of Indonesia can be involved in owning their flag carrier,” Emirsyah said after the listing ceremony at the IDX building in Jakarta on Friday.
