GARUDA INDONESIA SHARES FALL 20% ON DEBUT – NO SURPRISE

Dino D'Amore
By Dino D'Amore February 11, 2011 17:49

GARUDA INDONESIA SHARES FALL 20% ON DEBUT – NO SURPRISE

Shares of Garuda Indonesia, the country’s national airline, have fallen more than 20% on their market debut today. Garuda shares were trading at close to 600 rupiah on the Indonesia Stock Exchange as I write, down from their 750 rupiah listing price.

Analysts said the listing price was too high, see our editorial comment from December on the subject, and the sale has come at a time when emerging stock markets are under pressure. There are also fears about the earnings outlook for airlines this year as oil rises past $100 a barrel.

Out of the 6.3 billion shares on offer, just over half were taken up by investors. Banks and underwriters were left with the rest.

Dino D'Amore
By Dino D'Amore February 11, 2011 17:49
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