Malaysia's Boustead Plantations to offer 580 mln shares in IPO

KUALA LUMPUR Mon Dec 30, 2013 5:16am EST

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KUALA LUMPUR Dec 30 (Reuters) - Malaysian palm oil firm Boustead Plantations Bhd will offer 580 million new shares to investors, the firm said on Monday, as it looks to tap a domestic initial public offering (IPO) market that is expected to be vibrant next year.

The firm did not disclose the amount it hopes to raise from the listing or the timing of the IPO, which comes six months after parent firm Boustead Holdings took its plantation REIT private and merged it with Boustead Plantations to take advantage of investor interest in high-margin Southeast Asian palm oil companies.

Boustead Plantations said in a statement that 28.2 percent, or 163.6 million shares, will be allocated to institutional investors with the rest of the shares for retail investors.

The retail tranche consists of 492.4 million shares, of which 42 percent will be allocated to Boustead Holdings shareholders and 35 percent to Boustead REIT investors, Boustead Plantations said.

In July, Boustead Holdings paid 2.30 ringgit ($0.70) per unit, or $190 million for the 46.6 percent it did not own in its Al-Hadharah Boustead REIT.

After taking over the REIT, Boustead Plantations now controls 40 oil palm estates and 10 mills across Malaysia, creating a medium-sized plantation company that will benefit from an uptick in benchmark palm oil prices.

So far, Boustead Plantations IPO is the only palm oil-linked listing slated for next year.

Malaysia's IPO and secondary share sales are expected to jump in 2014 after political uncertainty eased following this year's general election and rising institutional investor demand for new listings. ($1 = 3.2877 Malaysian ringgit) (Reporting by Niluksi Koswanage; Editing by Miral Fahmy)

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