JAKARTA. The total IPO proceed target of PT Lion Mentari Airlines, parent company of Lion Air, is considered too high.
Trimegah Sekuritas analyst said the IPO plan could improve Lion Air's performance. "I believe Lion will perform better than GIAA (PT Garuda Indonesia Tbk)," said Mr Rovandi as quoted by Kontan.co.id, Thursday (21/3).
However, Mr Rovandi is not convinced that Lion Air can reach its IPO proceed target of Rp 14 billion, almost the same as GIAA's market cap. "I'm comparing this with GIAA's market cap of Rp 15 trillion," he said.
Mr Rovandi added that the performance of aviation issuers this year is slowing down slightly in line with Indonesia's economic growth. "Our economy is slowing down and it affects the performance of aviation issuers," he explained. (KR/MS)