Garuda Indonesia plans rights issue to restructure finances

PT Garuda Indonesia (Persero) Tbk is planning its third rights issue, aiming to issue up to 248.71 billion new Series E shares. The move is part of the Garuda Indonesia Group Financial Health Restructuring Plan for 2025–2029, which received approval from the Minister of State-Owned Enterprises in June 2025.

As part of the corporate action, the company's major shareholder, PT Danantara Asset Management (DAM), will contribute capital through an in-kind contribution (inbreng) rather than cash. DAM will deposit 82.10 billion Series B shares of PT Garuda Maintenance Facility Aero Asia Tbk (GMFI), representing approximately 65.77% of GMFI's total placed and paid-up capital.

The estimated execution price for the rights issue is between Rp58 and Rp68 per share, with a nominal value of Rp25 per share. While DAM is contributing shares, other shareholders may exercise their rights through cash payments. The company expects this action to improve its financial condition by optimizing asset management and improving equity.