Lion Air Considers Reviving $500 Million Indonesian IPO, Sources Say

Fathiya Dahrul, Pei Li and Elffie Chew, Bloomberg News

Lion Air Group AG aircraft at Soekarno-Hatta International Airport in Jakarta, Indonesia, on Sunday, Sept. 4, 2022. PT Garuda Indonesia has signed a financing facility agreement with state-owned asset management firm PT Perusahaan Pengelola Aset for fleet restoration and maintenance of aircraft spare parts. Photographer: Dimas Ardian/Bloomberg , Bloomberg

(Bloomberg) -- PT Lion Mentari Airlines is considering reviving an initial public offering in Jakarta that could raise as much as $500 million, according to people 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 people said, asking not to be identified discussing private information. The company could raise $300 million to $500 million, they said.

Deliberations are ongoing and details such as the size and timing of the IPO could still change, the people said. A representative for Lion Air declined to comment.

A listing would be a boost to Indonesia’s IPO market after it hosted $3.6 billion of first-time share sales last year, up from $2.3 billion in 2022, according to data compiled by Bloomberg. Indonesia ranked sixth in the world in 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.

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 Co. 737 Max aircraft, but then Covid 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, according to its website. The airline is a subsidiary of PT Langit Esa Oktagon, which is part of the wider Lion Group.

--With assistance from Manuel Baigorri.