TEMPO.CO, Jakarta - Indonesia's largest taxi operator Blue Bird plans to open its shares to public trading by launching an Initial Public Offering (IPO) at the Indonesian Stock Exchange (ISX) in the near future. According to Blue Bird executive director Purnomo Prawiro, the IPO will be launched in order to allow Blue Bird to expand its operations and maintain its position as Indonesia's leading taxi operator.
"We are certain Blue Bird's business model and experience will allow us to continue providing our customers with innovative, safe and reliable services," said Purnomo at the Ritz Carlton in Mega Kuningan on Friday, October 3, 2014.
Blue Bird plans to release 531,400,000 shares—equivalent to 20 percent of the Blue Bird's equity after the IPO. Around 50 percent of the funds injected through the IPO will be used for fleet revitalization and maintenance, while 35,71 percent will be used to pay off Blue Bird's debts, and 14,29 percent will be saved as equity reserves for the company and its subsidiaries.
Blue Bird plans to socialize its IPO between October 24-28, 2014. By November 3, the company's shares would be tradable on the Indonesia Stock Exchange's (ISX) floor.
Purnomo added that the IPO provided an avenue for expansion for Blue Bird. "We are optismistic that Blue Bird's IPO will be positively responded," he finished.