Shares of Garuda Indonesia, the country's national airline, have fallen more than 20% on their market debut today. Garuda shares were trading at close to 600 rupiah on the Indonesia Stock Exchange as I write, down from their 750 rupiah listing price.
Analysts said the listing price was too high, see our editorial comment from December on the subject, and the sale has come at a time when emerging stock markets are under pressure. There are also fears about the earnings outlook for airlines this year as oil rises past $100 a barrel.
Out of the 6.3 billion shares on offer, just over half were taken up by investors. Banks and underwriters were left with the rest.