Garuda Indonesia has raised $530 million in its initial public offering, selling a 28% stake in the company.
A total of 6.3 billion shares were sold, of these 4.4 billion were newly issued, and 1.9 billion came from state-owned Bank Mandiri, says a senior executive at Garuda.
Following the share sale 69% of Garuda remains in the hands of the government. The remaining 3% is owned by Indonesia's airport authority.
Garuda shares will commence trading on the Jakarta Stock Exchange on 11 February. On 13 January Garuda kicked off marketing for the IPO, planning to sell up to 9.4 billion shares, priced between 750 rupiah to 1,100 rupiah each. This represented a 36.5% stake of the carrier, and would have generated 10.3 trillion rupiah ($1.1 billion) - far more than was actually raised.
Analysts have attributed the IPO's weak reception to market fears that the offering was overvalued. In addition, there are broader concerns about the outlook for Indonesian shares in 2011, which some feel could be due for a correction after their strong run in 2010.