Shares in the developer traded as high as $1.04 during Thursday’s session before closing at 75c on a volume of more than 975,000 units.

Malabar’s market capitalisation at the $1 listing price was $85 million.

Wilson HTM and RBS Morgans were the joint lead managers, book runners and underwriters for the float.

The oversubscribed IPO reflected strong demand from institutional and retail investors, but a lack of enthusiasm during trading hinted that overall appetite for coal stocks could continue to wane this year.

Malabar said it would direct its funding toward development of its Spur Hill underground in New South Wales’ Upper Hunter Valley coal region.

While Malabar owns nearly 28% of Spur Hill – which lies near Anglo American’s Drayton mine and BHP Billiton’s Mt Arthur mine – the company has the right to increase its interest in the project to as much as 80%.

The 586 million tonne proposed longwall operation is expected to produce 10Mt of coal per annum starting in 2017.

Malabar chairman Wayne Seabrook said he was delighted with the support for the launch.

“Successfully completing the IPO is another key step toward the development of this significant coking coal project for NSW,” he said in a statement today.

“We expect to make considerable progress and achieve a number of key milestones over the next 12 months.”

Malabar’s chief executive is former Peabody Energy and Excel Coal project manager Peter Doyle, a 25-year veteran of the NSW coal sector.

Rounding out the board are ex-Whitehaven directors Hans Mende and Andy Plummer, resources finance specialist Simon Keyser and former chair of Newcastle Coal’s infrastructure group Tony Galligan.