State tinplate producer PT Pelat Timah Nusantara (Latinusa) dropped 25 points from a peak of Rp 325 during the opening of its trading on Monday.
The share price closed at Rp 300 after rising 3.1 percent to Rp 335 as of 9:33 a.m..
On Monday, Latinusa, which is a subsidiary of state steel company PT Krakatau Steel, listed 2.52 million of its shares for public sale with the Indonesia Stock Exchange (IDX).
The listing followed an initial public offering (IPO) earlier this month, when the tinplate production company gained Rp 199 billion (US$21 million) in proceeds from the sale of 1.8 million shares.
Investment company PT Bahana Securities acted as the underwriter for the Latinusa IPO.
The company initially expected to net Rp 164.01 billion in fresh capital from the IPO for expanding its business, but the issue was rather more successful in sales volume than it first planned.
The funds from the IPO will be allocated to Latinusa's capital expenditure (capex) next year and to finance more high speed scroll cutting machines in its factory in order to boost production.
The company plans to boost its production to 160,000 tons of tin from 130,000 tons currently.
Latinusa also aims to upgrade its factory between 2010 and 2011 and plans the modernized factory to be fully operational by 2012.
Before the IPO, Krakatau Steel controlled a 93.87 percent stake in Latinusa, while the rest was owned by PT Baruna Inti Lestari.
The IPO changed the shareholding structure, with Krakatau now holding 75.10 percent, while Baruna Inti Lestari now holds 4.9 percent.
Baruna expects to increase its local market share in the industry to 60 percent next year, from 57.5 percent last year, while national tin plate consumption is expected to decline next year to 187,000 tons from 200,000 tons this year.
Latinusa predicts to gain Rp 1.2 trillion in revenue this year, lower than the Rp 1.5 trillion last year.
It also expects to net Rp 40 billion in net profits, smaller than the Rp 78 billion gained in 2008.
For 2010, Latinusa will target to produce 120,000 tons of tin, which will boost its revenue to Rp 1.8 trillion.
