The share price of PT AirAsia Indonesia has risen sharply since its listing on the Indonesia Stock Exchange (IDX) last week.
The airline’s shares have risen 25 percent a day over the past five days.
Air Asia went public through a backdoor listing scheme called PT Rimau Multi Para Pratama. Following the transactions, the corporate modified its name to PT Air Asia Indonesia on January 3.
Nikkei announced in August last 12 months that AirAsia intends to list its subsidiary on the Indonesian stock exchange by acquiring a locally listed company, a move that is predicted to pave the way in which for it to lift capital on the local capital market.
AirAsia Indonesia President and CEO Dendy Kurniawan said on Monday the corporate plans so as to add two more planes – Airbus A320s – to its fleet because it looks to open recent routes this 12 months.
He declined to elaborate on the corporate’s plans. “We’ll announce the small print next time,” Dendy said, in line with account.co.id.
Meanwhile, Bertoni Rio, senior analyst at Anugerah Sekuritas Indonesia, said the value increase was temporary and stemmed from euphoria following the name change from PT Rimau Multi Para Pratama to PT Air Asia Indonesia on January 3.
He said AirAsia is a well known brand amongst airlines. “Investors have positive expectations, which is driving up the share price.”
Achmad Yaki, an analyst at BCA Sekuritas, had similar comments. “It’s still euphoria, we still don’t know Air Asia’s results,” Achmad said, adding that the airline is currently facing various challenges.
