Hot stock: Golden Energy trades below placement price on debut

SHARES of Golden Energy and Resources, which is backed by Indonesia's Sinar Mas Group, on Monday traded below their placement price on the first day of trading as a new entity.

The mainboard listing was trading at S$0.66 as at 2.49pm, one cent below its placement price of S$0.67 apiece.

The company, formerly known as United Fiber System, had said in September it would acquire a coal exploration and processing business in Indonesia for US$37.2 million.

With the acquisition, the company now collectively owns the rights to mine more than two billion tonnes of thermal coal resources, with coal reserves of more than 750 million tonnes, as at Oct 31, 2016, said a press release by the Singapore Exchange.