Jakarta. Arindo Holdings, an affiliate of Indonesia's second-biggest coal miner Adaro Energy, raised $12.1 million from an initial public offering at the Stock Exchange of Mauritius on Dec. 4-6.

Mauritius-based Arindo, one of Adaro's overseas investment arms, put up 1.3 million shares for sale — equivalent to 5 percent of its equity — at $11.45 apiece.

"We conducted the IPO to gain more capital and strengthen our financial flexibility," Adaro said in a filing to the Indonesia Stock Exchange (IDX) on Tuesday (19/12).

Adaro will use the proceeds from the IPO to repay debt and shore up its working capital.

Arindo made its trading debut at the Stock Exchange of Mauritius on Dec. 15.

Jakarta-listed Adaro has a 100-percent stake in Arindo.

Arindo's registered total assets were valued at $483.96 million in September this year.

According to the Stock Exchange of Mauritius, Arindo booked a profit of $23.14 million in 2016, 34 percent lower than in 2015. Its revenues totaled $171.35 million in 2016, down 7.5 percent from $185.36 million in 2015.

Tax-haven Mauritius, with a population of around 1.3 million, had jumped 24 places in the World Bank's Ease of Doing Business Index for 2018, from 49th to 25th.

Adaro has a total of 13 affiliates in Indonesia, Singapore and Mauritius.

Adaro produced 39.44 million tons of coal in the first nine months of 2017, a drop of 2 percent since the corresponding period last year.

The company expects to produce 52 million to 54 million tons of coal this year.

Adaro's affiliates are also developing a number of power plants in East Java and Central Java to diversify its revenue sources.