Garuda IPO gets off the ground

Flag carrier PT Garuda Indonesia launched an up to US$500 million initial public offering (IPO) today, kicking off a busy year for capital-raising in Southeast Asia's biggest economy.

The Indonesian government had initially planned to launch the Garuda IPO in November last year, but later delayed it for 2011, Reuters reported.

The company aimed to list on February 11, the term sheet said.

"IPOs of this size and nature will be a key feature of the industrialisation process driving ASEAN growth," said Singapore-based Geoff Howie, a sales and markets strategist at MF Global, referring to the Association of Southeast Asian Nations grouping.

Indonesia's fast-growing economy is attracting interest from foreign investors, encouraging companies to tap equity markets. Indonesia's benchmark share index jumped 46 percent last year, in part supported by $2.18 billion in foreign portfolio inflows, which was more than double the level in 2009.
(Source:www.cargonewsasia.com)