Lion Air considers reviving US$500 million Indonesian IPO: sources
LION Mentari Airlines is considering reviving an initial public offering (IPO) in Jakarta that could raise as much as US$500 million, according to sources familiar with the matter.
Indonesia’s biggest private carrier is working with advisers on a potential offering that could take place as soon as the end of this year, the sources said, asking not to be identified discussing private information.
The company could raise US$300 million to US$500 million, they said.
Deliberations are ongoing and details such as the size and timing of the IPO could still change, the sources said. A representative for Lion Air declined to comment.
A listing would be a boost to Indonesia’s IPO market after it hosted US$3.6 billion of first-time share sales last year, up from US$2.3 billion in 2022, according to data compiled by Bloomberg.
Indonesia ranked sixth in the world in the number of IPOs in 2023 and ninth in terms of proceeds, according to an EY report cited in a statement from the country’s bourse.
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Lion Air had explored an IPO in 2019 as it sought to move past an October 2018 crash that killed all 189 people on board one of its Boeing 737 Max aircraft.
But then the Covid-19 pandemic erupted and the plan was put on hold as air travel stalled.
Lion Air is a low-cost carrier whose first flight took place in 2000.
The airline is a subsidiary of PT Langit Esa Oktagon, which is part of the wider Lion Group. BLOOMBERG
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