Garuda plans third rights issue at Rp58 to Rp68 a share
Major shareholder Danantara Asset Management will exercise all its rights by contributing a 65.77% stake in aircraft maintenance company GMFI.
Garuda Indonesia plans to issue up to 248,705,613,200 new Series E shares through its third rights offering, according to a disclosure to the Indonesia Stock Exchange. The proposed exercise price ranges from Rp58 to Rp68 per share, with a nominal value of Rp25 each.
The company put the offering's value at up to Rp6,217,640,330,000. It will announce the conversion ratio once the final exercise-price structure is determined. Shareholders who do not take up their rights face dilution of up to 37.92% if all rights are exercised.
Danantara Asset Management (DAM), which holds 370,902,553,959 Garuda shares, or 91.11%, said in a letter dated 6 November 2026 that it would exercise its entire entitlement through a non-cash contribution. It will transfer 82,100,173,900 Series B shares in Garuda Maintenance Facility Aero Asia (GMFI), representing 65.77% of GMFI's issued and fully paid capital. Garuda will issue DAM 226,596,479,800 new Series E shares.
Under the indicative timetable, registration is scheduled to become effective on 11 December 2026. Eligibility will be based on the shareholder register at 16.15 WIB on 23 December 2026. Rights are due to be distributed on 28 December 2026, with trading and exercise scheduled from 29 December 2026 to 7 January 2027. Unexercised rights will expire.
Additional share subscriptions must be paid by 11 January 2027, followed by allotment on 12 January 2027 and refunds on 14 January 2027. Any shares remaining after allocation to rights holders seeking extra shares will not be issued.
Garuda said proceeds would support cabin refurbishment, in-flight connectivity, lounge improvements and aircraft repainting. It expects the GMFI stake acquisition to strengthen its control and economic interest in the maintenance business.
The airline said the transaction would leave pro forma consolidated revenue and profit or loss unchanged because GMFI is already consolidated. It would increase Garuda's share of GMFI's net profit and reduce non-controlling interests.
