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oal miner PT Mitrabara Adiperdana made an overall stagnant stock market debut on Thursday, as the market remains pessimistic over the coal business due to plunging global prices.

Mitrabara'€™s shares closed at the same price of its initial public offering (IPO), Rp 1,300 apiece. They rose more than 10 percent at the market'€™s opening bell to Rp 1,330 each, but then fell down again by the close.

The shares were traded on the Indonesia Stock Exchange (IDX) under the code MBAP.

Mitrabara reaped about Rp 319.09 billion from releasing 245 million shares, or 20 percent of the company'€™s enlarged capital, in the IPO held earlier this month.

About 58.5 percent of the proceeds would be used to develop its subsidiary and support the company'€™s plan to build a port, according to Mitrabara president director Khoirudin.

The remaining 35 percent and 6.5 percent, he explained, would be allocated for the company'€™s working capital and capital expenditure (capex). Mitrabara would soon start the construction of a port in Malinau, North Kalimantan, to support the company'€™s plan to enhance its production and to support its long-term business, said Khoirudin.

The construction will kick off in the second half of this year.

'€œWe have estimated that, to build supporting infrastructure for our business, we might need US$40 million. The infrastructure includes a 65-kilometer road that we have already built,'€ he added.

Mitrabara decided to go public this year, although prices of coal have not yet improved, because it believed that coal prices and demand would rise in a year or two, hence the case for the company to fund expansion, Khoirudin explained.

'€œCoal is a highly needed commodity. So although its price has been plunging sharply lately, it might also pick up significantly in the future. We are upbeat to list our shares now in the stock market to secure necessary funds for our business expansion,'€ he explained.

Mitrabara targeted to produce 2.5 million tons of coal this year, or 38.8 percent more than the 1.8 million produced last year. It aims to produce 4 million tons of coal in 2016.

The company exports all of its production, with Japanese energy company Idemitsu Kosan as the main client for the coal miner. Last year Idemitsu absorbed 37.76 percent of Mitrabara'€™s coal production, followed by Dutch coal trader Trafigura Beheer BV with 30.06 percent.

Following the IPO, Idemitsu '€” who acted as a standby buyer for Mitrabara'€™s shares '€” announced that it had acquired a 12 percent stake in the coal miner.

Mitrabara is owned by Indonesian tycoon Athanasius Tossin Suharya and PT Baramulti Sugih Sentosa, the parent of listed Indonesian coal producer Baramulti Suksessarana.