Garuda Shares Tumble in Debut on Rising Fuel Outlook
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PT Garuda Indonesia plunged in Jakarta trading, the first decline for shares at their listing debut in the country since at least 2006, amid concern that rising fuel prices will damp airlines’ profit.
The stock opened at 700 rupiah, 6.7 percent lower than its 750 rupiah initial public offering price, and fell to 620 rupiah at the 4 p.m. close on the Indonesia Stock Exchange. Garuda, the nation’s largest airline, last month completed a 4.8 trillion rupiah ($538 million) initial public offering at the bottom of the price range.