Earlier, Borneo Olah Sarana Sukses and underwriter Victoria Sekuritas announced that the shares would be offered in the range of IDR 350-600 a piece, reflecting a price-to-earnings ratio (PER) of 3-5 times. The IDR 400 price that was finally agreed upon is therefore in the lower end of that target range.

The offering period is set for 9-12 February 2018, while listing on the Indonesia Stock Exchange is scheduled for 15 February 2018.

Wisnu Widodo, Director at Victoria Sekuritas, is optimistic that investors are attracted by Borneo Olah Sarana Sukses' shares due to the cheap valuation. Moreover, the coal price has increased significantly since 2016 and that makes the prospects of the coal mining sector as a whole much more attractive. However, since Friday (02/02) there has been a flight to safety in global stock markets due to rising expectations of another Federal Reserve rate hike amid forecasts of rising US inflation.

Read more: IPO News Indonesia: Coal Miner Borneo Olah Sarana Sukses

Borneo Olah Sarana Sukses is a "unique" coal mining company in Indonesia because it delivers high grade coal (>6,000 Kcal, low sulfur and low ash). Few Indonesian coal miners can deliver this product and therefore this coal miner succeeded in penetrating the Japanese market.