Coal miner and trader Golden Energy and Resources made its debut on the mainboard of the Singapore Exchange (SGX) yesterday.
Shares of the group - formerly known as United Fiber System - opened at 71 cents but closed at 65.5 cents, down 1.5 cents or 2.2 per cent on its 67-cent placement price.
Backed by the Sinar Mas Group, one of Indonesia's largest conglomerates, Golden Energy and Resources is now the largest coal-mining company listed in Singapore, with a market capitalisation of $1.6 billion.
Its core business involves exploring and mining thermal coal in concession areas that cover about 42,904ha in South Kalimantan, Central Kalimantan, Jambi (a province in Sumatra) and South Sumatra in Indonesia.
The company owns the rights to mine more than two billion tonnes of thermal coal resources, with reserves of more than 750 million tonnes as at Oct 31, according to the SGX in a statement.
This comes as the group said in September that it would acquire a coal exploration and processing business in Indonesia for US$37.2 million (S$53 million).
Aside from coal mining and trading, the group is also in the forestry business, owning concession rights to 265,095 ha in South Kalimantan.
Mr Dwi Suseno, Golden Energy and Resources' executive director and deputy group chief executive, said the group is encouraged by the positive outlook of the coal market, as Indonesian President Joko Widodo's 35GW programme to provide additional power capacity will drive domestic demand further.
"We have continued to ramp up our coal production to ride on the strong demand for coal," he said, also noting that the group recently received approval to raise production from its BIB concession area to 7.5 million tonnes a year, and subject to demand and government approval, to further increase output to 12 million tonnes in 2017.
Mr Chew Sutat, SGX head of equities and fixed income, said: "This listing will not only offer investors an opportunity to capture opportunities in Indonesia's coal-mining sector but also bolster SGX's mineral, oil and gas cluster."
The listing of Golden Energy and Resources brings the total number of SGX-listed companies in the mineral, oil and gas sector to 26, with a combined market capitalisation of $3.6 billion.