Wisnu Widodo, Director at Victoria Sekuritas (appointed as underwriter for the IPO), said the shares will be offered in the range of IDR 350-600 a piece, reflecting a price-to-earnings ratio (PER) of 3-5 times. Thus, Borneo Olah Sarana Sukses will raise between IDR 140 and 240 billion through the IPO.

Proceeds from the IPO will be spent on infrastructure-related issues in an effort to boost Borneo Olah Sarana Sukses' business activities. Secondly, it will use part of the proceeds to settle a debt at Bank Victoria.

Widodo Nurly Sumady, Director of Borneo Olah Sarana Sukses, said the coal mining company currently has a total debt of IDR 50 billion (approx. USD $3.8 million) at Bank Victoria (and has no outstanding debts at other institutions). The IDR 50 billion loan was taken from Bank Victoria to finance the company's working capital.

With the fresh funds from the IPO, Borneo Olah Sarana Sukses targets to double its coal mining output in 2018 from 500,000 metric tons in 2017. The coal miner has four coal mining concessions: all in the Kutai Barat area in East Kalimantan.

Per September 2017 Borneo Olah Sarana Sukses' sales reached IDR 120.6 billion (approx. USD $9 million), while the company's net profit was reported at IDR 20.8 billion (approx. USD $1.6 million).

On its website Borneo Olah Sarana Sukses states that the company is unique in Indonesia because it delivers high grade coal (high CV, low sulfur and low ash). Few Indonesian coal miners can deliver this product and therefore Borneo Olah Sarana Sukses succeeded in penetrating the Japanese market.

Read more: Overview of Indonesia's Coal Mining Industry

So far in 2018 only one company has made its trading debut on the Indonesia Stock Exchange: telecommunication construction services company LCK Global Kedaton (on 16 January 2018).

Read more: IPO News Indonesia: LCK Global Kedaton Made Trading Debut