Garuda shares tanked 21% on Friday

Following its recent initial public offering (IPO), national airline Garuda Indonesia saw its share price tank about 21 percent Friday on the Jakarta Stock Exchange, averaging at Rp 620 (US$0.07) per share after opening at Rp 750.

The price had dropped as low as Rp 580 before recovering to Rp 700 before the bell.

Garuda sold 6.33 billion shares during its IPO, raising Rp 3.3 trillion in cash.

State Enterprises Minister Mustafa Abubakar said in response to Friday’s trading that he had predicted the drop, saying it was in line with the declining trend of the Jakarta Composite Index.

He also said he believed the price would go back up, bolstered by Garuda’s plan to expand its business through the purchase of additional aircraft.

Separately, Coordinating Minister for the Economy Hatta Rajasa said he would evaluate Garuda’s IPO, tempointeraktif.com reported.