As the first MRO company in Indonesia to hold an IPO, GMF is ready to expand worldwide by promoting the latest technological advances and world-class human resource development.
Jakarta, 11 September 2017 – PT Garuda Maintenance Facility Aero Asia Tbk (GMF), a pioneer in the Maintenance, Repair, and Overhaul (MRO) industry in Indonesia, today holds a Public Expose for its Initial Public Offering (IPO).
A maximum of 10,890,068,700 new shares will be offered to the public. The amount represents a maximum of 30% of the company’s issued and paid-up capital subsequent to the IPO, with 20% of the portion allocated for public investors and 10% allocated for strategic investors. The price shall be offered to the public at IDR 390 – IDR 510 per share. The book building period for the public portion of 20% will run from September 11 to 21, 2017. This IPO is the largest in the MRO industry in Asia in the last 17 years.
GMF President Director Iwan Joeniarto said that the IPO is a strategic move for GMF to realize its vision of becoming the Top 10 MROs in The World with revenue reaching USD 1 billion in 2021. “With competent management and reliable engineers, the company’s track record and bright business prospects, we are confident that the GMF IPO will receive positive response from investors.” he said.
Meanwhile, GMF President Commissioner Helmi Imam Satriyono said that with the IPO, GMF will become a public company that must show positive performance to all stakeholders and shareholders. “Better implementation of good corporate governance to provide added value to stakeholders and shareholders is absolutely necessary.” added Helmi.
GMF President Director Iwan Joeniarto added that the IPO would be held to generate funding needed to plan GMF’s future expansion. Approximately 60 percent of the net proceeds from the IPO will be used by GMF for financing the GMF’s investment in order to improve capacities and capabilities in Line Maintenance and Repair & Overhaul, approximately 15 percent for refinancing, and the remaining will be used for working capital purposes.
“The GMF expansion plan will focus on enhancing capacity and capability by updating human resources and skills so that GMF can become a Total Solutions Provider, providing integrated services for our customers. Furthermore, GMF will develop by enlarging our market and raise our global footprint.” said Iwan.
In this corporate action, PT Mandiri Sekuritas, PT Bahana Sekuritas, PT Danareksa Sekuritas and PT BNI Sekuritas will act as Joint Lead Underwriters.
The MRO industry is an attractive and relatively safe industry that is not highly affected by economic conditions. This is because the maintenance and repair of aircraft is obligatory and must be done routinely by all airlines outside the competition among the airlines themselves. As part of the service and equipment industry, the MRO business alone is quite profitable with profit margins reaching up to double digits, while GMF itself recorded a 15 percent profit margin growth in 2016.
GMF is a market leader in Indonesia and one of the major players in Asia. According to research from the Canadian Association of Marketing Research Organizations (CAMRO), the Asia Pacific and Middle East region is calculated to raise the number of aircraft fleets and the highest MRO growth. In line with this, GMF will focus on global expansion in the Middle East, East Asia, and Australia.
GMF has a good historical record as of the 2016 fiscal year. GMF’s EBITDA margin of 26 percent is recorded as one of the highest in the MRO industry. Revenue growth has consistently reached double digits for the last three years, with 27.18 percent in 2016. GMF revenue in 2016 amounted to US$389 million, with net income at US$57.7 million. The excellent performance and implementation of good corporate governance has been proven by the Very High-Level Quality MRO award from the Federal Aviation Administration (FAA) and the 2015 winner of Annual Report Award held by the Financial Services Authority (Otoritas Jasa Keuangan /OJK).
With its effort to become a Total Solutions Provider, GMF has contributed to Indonesia in the eyes of the international community through the establishment of “GMF Hangar 4″ which is the largest narrow body hangar plane in the world and is the only hangar that can accommodate 16 aircraft at once. In addition to hangars, GMF is also the sole operator of the Airbus Remote Training Center (ARTC) in the world that provides training on reparation and maintenance of international standard aircraft.
“Total Solutions Provider is our essence in enhancing the capacity and capability of technology and services to absorb the potential in the MRO business which is still very large both at home and abroad.” said Iwan.