February 21, 2014 / 4:10 AM / 4 years ago

Garuda Indonesia to raise $135.5 mln in rights issue for new fleet

JAKARTA, Feb 21 (Reuters) - Indonesian flag carrier Garuda Indonesia plans to raise up to 1.6 trillion rupiah ($135.45 million) from a rights issue in April that will mainly be used to fund a new fleet, the company said in an stock exchange filing.

Garuda will issue 3.2 billion new shares, priced at 460 to 500 rupiah per share, it said in the Thursday evening filing. It appointed Bahana Securities, Mandiri Sekuritas and Danareksa as joint underwriters.

Eighty percent of the proceeds from the rights offering will be used to develop a new fleet, while the rest will be used for working capital and aircraft lease payments, the statement added.

The airline is also looking for strategic investors for its low-cost unit Citilink, with the ultimate aim of taking it public.

Garuda reported a 90 percent drop in net income to $11.0 million for the full year ended December from $110.6 million in 2012, far below the $44.4 million average estimate of five analysts, according to Thomson Reuters data.

At 0350 GMT, the airline’s shares traded steady at 484 rupiah. The broader Jakarta stock exchange index was up 0.6 percent.

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