Baramulti's shares price drops in trading debut

Thermal coal producer PT Baramulti Sukses Sarana (BSSR) saw its share price fall during its trading debut on the Indonesia Stock Exchange (IDX) on Thursday, the Jakarta Post reported.

Shares in Baramulti opened at Rp 1,900 on Thursday, down 2.56 percent from its initial public offering (IPO) price of Rp 1,950. BSSR is the first stock this year to open lower after its initial bow on the bourse.

Baramulti president director Henry Angkasa said that dimmer prospects for coal miners throughout the world and bearish prospects for the global capital market contributed to the drop.

The firm's corporate affairs director, Geroad Jusuf, described BSSR's drop after its trading bow as acceptable, given that the firm had raised its IPO price to Rp 1,950

from Rp 1,800, as initially planned, after several large institutional investors expressed interest.

Three such large investors who bought BSSR shares during its IPO were Khopoli InvestmentlAmited, a subsidiary of India's. huge integrated power company Tata Power Company Limited; Japan-based Idemitsu Kosan Co. Ltd; and Geneva-based commodities trader Trafigura, which is the main competitor of major commodity trading and mining company Glencore International Plc.(*)