Garuda proposes up to 248.71 billion shares in third rights issue

PT Garuda Indonesia (Persero) Tbk. has proposed a third rights issue involving up to 248.71 billion new shares to continue its financial restructuring. A company disclosure dated 4 November 2026 says major shareholder PT Danantara Asset Management (DAM) intends to subscribe by contributing shares in PT Garuda Maintenance Facility Aero Asia Tbk. (GMFI).

The proposed Series E issue has an indicative subscription price of Rp58-Rp68 per share and a nominal value of Rp25 per share. Garuda will disclose the final subscription price in its prospectus. The offering can proceed once the Financial Services Authority (OJK) has issued an effective statement.

DAM’s planned non-cash contribution comprises 82.10 billion Series B shares in GMFI, equivalent to 65.77% of its issued and paid-up capital. DAM became the registered owner following completion of a transfer from PT Angkasa Pura Indonesia (InJourney) on 2 November 2026. Shareholders other than DAM can pay cash to exercise their rights.

Garuda cautioned that holders who leave their rights unexercised could suffer ownership dilution of as much as 37.92%. Participation levels and the offering’s final structure will determine its impact on cash, current assets and liquidity ratios, the airline said.

The proposal forms part of Garuda’s 2025-2029 financial restructuring plan, which received approval from the state-owned enterprises minister in June 2025. Garuda said the transaction could strengthen strategic links between its airline operations and GMFI’s aircraft maintenance, repair and overhaul activities.

Audited group figures for the six-month period ending 30 June 2026 put revenue at US$1.80 billion and the loss at US$112.96 million, compared with a US$147.05 million loss a year earlier. Liabilities amounted to US$7.43 billion at 30 June 2026, while negative equity was US$52.15 million.