GMF AeroAsia remains undecided on plans for a private share placement, even as a two-year deadline draws close.

In March 2018, shareholders gave their approval to issue 2.82 billion new shares, about 10% of total shares. Of this, around 2.33 billion shares will be issued to a strategic investor selected by the company, while the remaining shares will go to staff as employee stock options.

Indonesia’s regulations allow the company two years to execute this.

In a recent response to a stock exchange query about media reports, the MRO arm of Garuda Indonesia says it is still conducting internal studies and has yet to decide.

The company is taking another look at its plans and strategic partner Air France Industries KLM Engineering & Maintenance will work with it on the placement, local publication Investor Daily reported on 28 January.

At a media event held on the same day, GMF’s chief executive Tazar Kurniawan said the placement was delayed as its share price is too low. He adds a strategic review will be conducted to look at boosting the company’s share price.

GMF’s shares last closed at Rp109 ($0.008) on 4 February, far below the IPO price of Rp400 in October 2017.

In 2018, GMF told FlightGlobal it expects the strategic investor to take up to a 20% stake in the company, by acquiring another 10% of Garuda’s shares in the MRO firm.

It added that securing a strategic investor will give it extra working capital, increase its MRO capabilities through knowledge transfer, create new market opportunities and raise its brand profile.