Shares of Adaro Andalan Indonesia—a coal mining company backed by Indonesian billionaire Garibaldi Thohir—surged 20% on its trading debut on the Jakarta Stock Exchange as demand for IPOs in Indonesia picked up.

The company, which supplies thermal coal used to produce electricity, raised 4.3 trillion rupiah ($271 million) from the IPO by selling 778.7 million shares at 5,550 rupiah, near the lower range of its proposed price of between 5,500 rupiah and 5,900 rupiah each.

“The prospects for the thermal coal business are still attractive because coal demand is still quite high, especially because it is supported by economic growth in Asia,” Julius Aslan, president director of Adaro Andalan said in his speech during the listing ceremony on Thursday morning. The shares last traded at 6,650 rupiah after trading was suspended when it reached the daily fluctuation limit.

The Adaro Andalan IPO is the largest listing in Indonesia since the debut of gold and copper miner Amman Mineral Internasional in July 2023. That record is set to be surpassed by Daya Intiguna Yasa, the Indonesian unit of Malaysian home improvements chain Mr. DIY, which is raising 4.7 trillion rupiah from its maiden share sale later this month.

Adaro Andalan holds the thermal coal assets of Alamtri Resources Indonesia, formerly known as Adaro Energy Indonesia. In September, Alamtri announced it was separating these assets to access additional funding sources.

While the group derives majority of its revenue from coal, it projects that more than half of its revenue will come from non-coal businesses by 2030 as it scales up its renewable energy projects and reduces reliance on coal.

Alamtri is developing the Kaltara Industrial Park, a 16,000-hectare green industrial complex in North Kalimantan. The park will be powered by a 1,375-megawatt hydropower plant, being built by the company at an estimated cost of $2.6 billion. The industrial facility will also house an aluminum smelter with an initial production capacity of 500,000 tons per year (expandable to as much as 2 million tons) that’s slated for completion next year.

Lsat month, Alamtri said it plans to distribute as much as $2.6 billion of dividends to its shareholders to encourage them to support the Adaro Andalan IPO. That sent the company’s shares surging to an all-time high of 4,040 rupiah apiece on November 5. The stock has since retreated to 2,310 rupiah each.

Thohir, the CEO of Alamtri has an estimated net worth of $3.3 billion, ranking him No. 17 on the list of Indonesia's 50 richest that was published in December 2023. Thohir also owns a stake in Merdeka Battery Materials, a supplier of raw materials used to make electric vehicle batteries.

Additional reporting by Ardian Wibisono.