Citilink Postpones IPO Plan

TEMPO.CO, Jakarta - One of the domestic low-cost carrier (LCC), Citilink Indonesia, has decided to postpone their initial public offering (IPO) until 2016 from the original plan scheduled to be held in 2015. President and CEO of Citilink Indonesia Arif Wibowo, said that the delay was due to the untimely economic condition. "[The IPO] must be rescheduled," he said on Tuesday, October 7, 2014.

Arif did not mention the number of shares that will be offered and the amount funds expected to be gained from the IPO. Currently, the company is focusing on improving their performance because they know if the company's performance is good, they will automatically attract investors.

Up until August 2014, Citilink has flown more than 5 million passengers, or equals to 62.5 percent of the 8 million passenger targeted in 2014. "We are 3 million passengers short this year," said Arif.

Currently, 99.99 percent of Citilink's shares are still owned by Garuda Indonesia. Since September 2014, Garuda plans to offer Citilink shares up to a maximum of 40 percent to strategic investors. This is done to increase Citilink's equity.

There were originally four potential investors who have made an offer, later the number dropped to only two investors. However in September 2014, the offering was cancelled because it did not reach the best sales price. "For the best interest of Citilink, the process will be postponed at the time," said CEO of Garuda Indonesia Emirsyah Satar.

KHAIRUL ANAM | FAIZ NASHRILLAH