Lion Air’s Renewed IPO Ambitions: Aiming to Raise up to $500 Million

Indonesia’s largest airline by fleet size, Lion Air, is reportedly revisiting its ambitions for an initial public offering (IPO), aiming to raise funds in the range of USD 300 to 500 million. This development, as reported by Bloomberg citing informed sources, indicates renewed discussions with advisors and a potential listing on the Indonesian Stock Exchange (IDX) later this year. Efforts to contact Lion Air for a statement were made by ch-aviation.

This isn’t the airline’s first attempt at an IPO. Previously in 2019, Lion Air had targeted to raise approximately USD 1 billion, but the plans were stalled due to unfavorable capital market conditions. The following year, another attempt was thwarted by the emergence of the Covid-19 pandemic.

The primary goal behind this potential IPO is to fund aircraft acquisitions and support Lion Air’s considerable network expansion plans. If successful, Lion Air will join other major Indonesian aviation players on the IDX, including Garuda Indonesia, Indonesia AirAsia, and Jati.

Lion Air’s current operational footprint extends to 48 destinations across four countries. The airline’s fleet comprises 109 aircraft, which includes models such as the A330-300, A330-900N, Boeing 737-800, 737-9, and 737-900ER. Additionally, Lion Air has a significant number of aircraft on order, including fifty 737-10s and 179 737-8s, highlighting its ambitious growth trajectory in the region.