AirAsia Indonesia’s Share Price Skyrockets after Listing

The price of PT AirAsia Indonesia’s shares has skyrocketed since they were listed on the Indonesian Stock Exchange (IDX) last week.

The airline’s shares reached 25 percent per day over the last five days.

Air Asia entered the bourse through a backdoor listing scheme named PT Rimau Multi Para Pratama. After the transactions, the company changed its name to PT Air Asia Indonesia on Jan. 3.

Nikkei reported the AirAsia's plan to engineer a backdoor listing for its Indonesian unit by taking over a locally listed company in August last year, paving the way for fundraising in the local capital market.

On Monday, AirAsia Indonesia president director Dendy Kurniawan said the company planned to add two more planes -- Airbus A320 planes -- to its fleet as it wanted to open up new routes this year.

He, however, declined to further explain the company’s plans. “We will announce the details next time,” said Dendy, as reported by kontan.co.id.

Meanwhile, Bertoni Rio, a senior analyst from Anugerah Sekuritas Indonesia, said the price jump was temporary due to the euphoria after the name change from PT Rimau Multi Para Pratama to PT Air Asia Indonesia on Jan. 3.

He said AirAsia was well-known brand among aviation firms. “The investors have a positive expectation that makes the share price increase.”

Similar comments came from Achmad Yaki, an analyst at BCA Sekuritas. “It is still in euphoria, we still don’t know the performance of Air Asia,” Achmad said, adding that currently  airline businesses were facing various challenges.