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Lion Air to decide on IPO plans by month-end

February 15, 2020 00:00:00

SINGAPORE, Feb 14: Indonesia's Lion Air will decide by the end of the month when to proceed with its planned initial public offering (IPO) in the face of reduced investor appetite for the sector because of the coronavirus outbreak, said sources close to the matter. Banks involved in the expected $500 million IPO of one of Asia's largest budget airlines have completed investor presentations in Singapore, Hong Kong, Jakarta, Europe and the United States, the sources said. "People like the Indonesian market and the story of investing in a fast-growing airline, but the question is more about timing," said one source who declined to be identified because he is not authorised to speak to the media. Sources had previously said that Lion Air could launch the IPO as early as March. Lion Air is part of the Lion Air Group, which has airline joint ventures in Malaysia and Thailand and also operates airports in Indonesia as well as aircraft maintenance facilities. The pre-marketing for the IPO included a combination of face-to-face meetings and phone calls because travel was restricted owing to the coronavirus, sources said. — Reuters

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