Indonesian airline operator Sriwijaya Air has decided to postpone its initial public offering to May, two months behind schedule, requiring more time to prepare.
The low-cost carrier previously planned to sell 25 percent of its enlarged capital in the IPO to purchase more medium- and long-range jets to expand the company’s overseas operations. CEO of Sriwijaya Air Chandra Lie, quoted by Indonesia Investments, said that the carrier requires extra time to prepare for the IPO. He also said that the company might revise the number of offered shares. The airline is reportedly planned to sell 25% of its stocks. In October 2016, Chandra Lie said to the media that the company would buy 15 narrow-body aircraft and 2 wide-body jets. Meanwhile, Sriwijaya is also planning the development of a maintenance, repair, and overhaul facility in the Soekarno-Hatta International Airport area (located just outside Indonesia’s capital city of Jakarta). The airline is currently negotiating land acquisition related to the development of this facility with state-owned airport operator Angkasa Pura II.
Chandra Lie founded Sriwijaya Air with his brother Hendry Lie in 2003. Today, the airline is the third largest in Indonesia, holding about a 10th of the domestic air passenger transport market share and carries more than 800,000 passengers per month.