[QODLink]
Asia-Pacific
Malaysia's Felda shares surge in market debut
First-day price value of palm oil giant reflects investor interest in world's second-biggest public offering.
Last Modified: 28 Jun 2012 12:09

Shares of Federal Land Development Authority (FELDA), the Malaysian palm oil giant, soared by as much as 20 per cent on its public offering, the world's biggest share sale this year after Facebook.

State-owned Felda Global Venture Holdings hit a high of RM5.46 ($1.71) on Thursday shortly after listing on the main board of Bursa Malaysia, up from its initial price of RM4.55 ($1.43).

Its first-day jump defies an overall weakness in global stock markets and reflects investor interest in the world's third-largest palm oil company.

FELDA has raised around RM10bn ($3.1bn) in the largest IPO in Asia this year. It is the second-biggest in the world after Facebook, which raised $16bn but whose shares slumped after its public debut in May.

FELDA's commercial plantations cover more than 400,000 hectares of land.

While the public offering is set to raise $3bn for the parent company, there are fears that FELDA's original stated purpose, of helping the landless poor, will be abandoned.

There are also concerns about how profitable the company can be when more than half its trees are more than 20 years old.

175

Source:
Al Jazeera and agencies
Topics in this article
People
Country
City
Organisation
Featured on Al Jazeera
Swathes of the British electorate continue to show discontent with all things European, including immigration.
Astronomers have captured images of primordial galaxies that helped light up the cosmos after the Big Bang.
Critics assail British photographer's portrayal of indigenous people, but he says he's highlighting their plight.
As Western stars re-release 1980s charity hit, many Africans say it's a demeaning relic that can do more harm than good.
Featured
No one convicted after 58 people gunned down in cold blood in 2009 in the country's worst political mass killing.
While hosting the World Internet Conference, China tries Tiananmen activist for leaking 'state secrets' to US website.
Once staunchly anti-immigrant, some observers say the conservative US state could lead the way in documenting migrants.
NGOs say women without formal documentation are being imprisoned after giving birth in Malaysia.
Public stripping and assault of woman and rival protests thereafter highlight Kenya's gender-relations divide.