Lion Air targets up to $1.35 billion IPO in early 2020: Sources

A Lion Air Boeing 737 MAX 8 jet on the tarmac of Soekarno Hatta International airport near Jakarta, Indonesia, on March 15, 2019.
A Lion Air Boeing 737 MAX 8 jet on the tarmac of Soekarno Hatta International airport near Jakarta, Indonesia, on March 15, 2019. PHOTO: REUTERS

HONG KONG (REUTERS) - Indonesia's Lion Air has accelerated preparations for a stock market listing in the first quarter of next year with an initial public offering (IPO) that could raise up to US$1 billion (S$1.35 billion), several sources close to the matter said on Monday (Nov 4).

The airline, which had been awaiting an official report on last year's deadly crash of a Lion Air Boeing 737 MAX before deciding on a long-delayed flotation, is hoping to fund future aircraft deliveries to service an improving regional market for air travel.

The Indonesian accident report last month focused on flaws in Boeing cockpit software while recommending better training at Lion Air and improved US and local regulation.

The sources declined to be named because they are not authorised to speak to the media about the IPO, which would involve the group's core Indonesian airline.

A Lion Air spokesman in Jakarta declined comment.