Jakarta, 10 October 2017 – PT Garuda Maintenance Facility AeroAsia Tbk (GMF) a pioneer of MRO (Maintenance, Repair, and Overhaul) company or aircraft maintenance in Indonesia, officially listed their shares on the Indonesia Stock Exchange (IDX) today using the stock code GMFI. GMF is the 25th company to list its shares on the IDX this year and is the first MRO company in Indonesia to go public.
GMF offered 2,823,351,100 new shares or 10% of the company’s issued and paid-up capital after its IPO at a price of IDR 400. In total, GMF raised IDR 1,129,340,440,000. GMF oversubscribed its shares 2.6 times by the end of the public offering period. Around 60% of the net proceeds will be invested for capital expenditure , 25 % for working capital, and the remaining amount will be used for refinancing.
GMF President Director, Iwan Joeniarto, said the IPO is a strategic move for GMF to realize its vision of becoming the Top 10 MRO in the World, with revenues reaching USD 1 billion by 2021 whilst boosting the Indonesian economy. “With a solid domestic and international expansion plan, GMF is ready to become the nation’s pride and boost to the local economy. By expanding our business, we will increase investment, create more jobs, and pay more taxes.”
“We are grateful for the confidence afforded by investors and related parties during the IPO, and invite potential investors who have not joined to gain added value with GMF shares,” Iwan said.
GMF will also continue to offer their shares to strategic investors. The amount offered is 20% of the company’s issued and paid-up capital after the IPO. Strategic investors will have the opportunity to have a direct investment in the company.
Iwan said that GMF will evaluate the potential strategic investors for their added value and those who can enhance the company’s brand on the world stage. “GMF welcomes potential investors to partner with GMF during this period of intense growth,” Iwan said.
Aircraft facilities plan in Batam, Australia, East Asia, and the Middle East will be the first to receive funding. GMF will soon increase its capability in airframe, component, and engine for aircraft. Furthermore, training GMF’s professional to a high standard and technological development are GMF’s organic strategy to takeover more integrated work.
The objective of GMF’s expansion is to level up its market share, the number of customers, and its global footprint. This will, in turn, increase GMF’s revenue.
GMF has a strong financial record as of fiscal year 2016. GMF’s EBITDA margin of 26% is noted as one of the highest in the MRO industry and revenue growth has consistently reached double digits for the last three years – at 27.18% from last year. GMF revenue in 2016 reached USD 389 million with net income at USD 57.7 million. Measured by revenue, GMF is currently the 13th largest MRO in the world.
The MRO industry is an attractive and relatively safe industry that is not sensitive to changing 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% profit margin growth in 2016.
GMF is a market leader in Indonesia and is one of the largest in Asia. According to research from the Canadian Association of Marketing Research Organizations (CAMRO), the Asia-Pacific and Middle East region is the highest growth region for MRO services due to increasing demand for air travel. In Indonesia alone, the MRO industry has a market value of USD 1 billion and is growing up to 11% each year. This market growth underscores GMF’s expansion plans and its strategic goal of becoming a Total Solutions Provider, providing integrated services for all customer’s needs.
“With satisfying performance, promising prospects, and trust from various parties, we invite our fellow Indonesians to join the GMF family and contribute to the Indonesian economy. Adhering to good corporate governance, GMF strives to deliver value to stakeholders and Indonesia,” closed Iwan.