Wedoany.com Report-Dec 05,  Shares of coal miner PT Adaro Andalan Indonesia jumped 20% on their first day of trading, showing strong demand for Indonesia's biggest initial public offering in a year and a half. The company's shares traded at Rs 6,650 per share, up from Rs 5,550 at the IPO price, taking its market value to $3.3 billion.

The listing of Jakarta-based PT Adaro Andalan Indonesia, which raised $272 million, is the largest listing in Indonesia since July 2023. The company holds thermal coal assets of PT Alamtri Resources Indonesia and plans to obtain additional financing by divesting these assets. Alamtri is one of Indonesia's mining companies that is diversifying away from fossil fuels by investing in other metals.

While Indonesia's IPO market has been sluggish during the presidential leadership transition, the Indonesian Stock exchange is planning 66 ipos in 2025, with more expected as political uncertainty subsides. In addition, Mr DIY Group's Indonesian sister company is also planning to go public later this month to raise up to Rs 4.7 trillion.

According to the prospectus, PT Adaro Andalan Indonesia achieved a consolidated profit of $911.2 million in the first half of 2024, and its parent company also paid a dividend of $2.63 billion to encourage shareholders to participate in the listing. Alamtri's stock holders will have the right to buy shares in the coal company at a price determined by Thursday's trading performance.