AirAsia Indonesia plans to sell a 20% stake through an initial public offering (IPO) to raise up to $200 million.
It has selected Credit Suisse and CIMB Securities Indonesia to be the joint lead underwriters for the IPO as it aims to list on the Indonesian stock exchange in the fourth quarter of this year.
"Through [the] IPO, we [will] attempt to attain the appropriate capital structure necessary to support future operations. We expect to raise $150 million to $200 million," says the airline's president director Dharmadi.
The carrier will use the proceeds from the IPO to expand its fleet and to increase its working capital. The airline also plans to have an employee share scheme.
"[The] Indonesian archipelago, being the largest island complex in the world with a population of over 240 million, makes an attractive market for air travel. We are in a prominent position to further expand our business," says Dharmadi.