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ea transportation and logistics services provider PT Transcoal Pacific took a big leap as it floated its shares on the Indonesia Stock Exchange (IDX) on Friday.

Transcoal Pacific believes the corporate action will help drive business growth.

Through the initial public offering (IPO), Transcoal Pacific obtained Rp 138 billion (US$9.59 million) in fresh funds that it plans to spend on new vessels and ongoing operations.

“All of the IPO funds will be used as our working capital. With larger cargo volumes, we need to use more boats from third parties, so we must have more capital,” Transcoal Pacific president director Richard Talumewo said during a press briefing after the IPO on Friday.

To boost earnings this year, the company will purchase three new vessels to add to its operational capacity. Earlier this year, it had purchased a floating terminal storage at an investment cost of $3.5 million.

“With this [purchase], we hope the utilization of the floating terminal storage can give us additional revenue of Rp 50 billion to Rp 60 billion this year,” Richard said.

In addition to the floating terminal storage, the firm will also purchase two more tugs and barges this year, Transcoal Pacific corporate secretary Anton Ramada Saragih said at the same occasion.

Overall, Transcoal Pacific is eyeing Rp 150 billion in net income in 2018, an increase from Rp 88.7 billion last year. In 2017, its revenue amounted to Rp 844.99 billion.

Richard said the growth of the business this year would be supported by the improving coal business, which in turn would increase demand for cargo services.

The rise in coal prices last year prompted the government to issue a regulation requiring mining companies to sell coal at discounted prices to state electricity firm PLN under the domestic market obligation (DMO).

Transcoal Pacific was confident that its business would not be affected by the current fluctuation of the rupiah, because it served domestic transportation needs.

In the first trading session on Friday, Transcoal Pacific — listed under the ticker code TCPI — saw its shares increase by 69.57 percent to Rp 234 per share, from the initial listing price of Rp 138 per share.

Anshy M. Sutisna, PT Investindo Nusantara Sekuritas investment banking director, said during the offering period, 632 investors had ordered Transcoal’s shares. “The shares were three times oversubscribed,” she said.

TCPI offered 1 billion shares, which is 20 percent of its paid-up capital. Transcoal Pacific became the 23rd company to be listed on the IDX this year.

It appointed PT Investindo Nusantara Sekuritas and PT Jasa Utama Capital Sekuritas as underwriters.

Before the IPO, 70 percent of Transcoal Pacific’s shares were owned by PT Sari Nusantara Gemilang (SNG) and 30 percent by PT Karya Permata Insani (KPI). SNG now holds 56 percent and KPI 24 percent, with the remaining 20 percent held by diverse shareholders.

Transcoal Pacific started its business since 2007, specializing in transshipment and logistic services primarily for coal businesses. The company offers various services, including the transportation for coal, crude palm oil and solar High Speed Diesel. Currently, it has 13 tugboats, 12 barges and one floating bulk terminal.

As of December 2017, coal transshipment contributed 70 percent to its revenue, followed by 10 percent from coal longhauling by tugs and barges, 8 percent from coal longhauling by mother vessels, 4 percent from fuel longhauling and the rest from other business activities.