BREAKINGVIEWS-Domestic demand blesses $3 billion Felda IPO

Thu Jun 14, 2012 8:03am BST

By Wei Gu

HONG KONG, June 14 (Reuters Breakingviews) - Malaysian palm oil supplier Felda priced near the top of the range, making it the second biggest offering of 2012, and propelling Kuala Lumpur to the top of Asia IPO tables. The reason isn’t just demand for oil but for stocks. South-East Asia’s investors are still hungry.

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CONTEXT NEWS

- Malaysia's Felda Global Ventures Holdings priced its IPO at 4.55 ringgit, or $1.43, a share on June 13, near the top of its indicative range. The company raised $3.1 billion, making it the world’s second-biggest IPO this year behind Facebook, which raised $16 billion in May.

- The top exchange in terms of Asia IPO proceeds is China’s Shenzhen ChiNext start-up market, which had raised $3.4 billion in the year to June 13, according to Thomson Reuters data. Felda would put Kuala Lumpur on par with or slightly ahead of ChiNext as the top IPO destination in Asia.

- Reuters: Malaysia's Felda prices $3.1 bln IPO near top end [ID:nL3E8HD6KE]

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(The author is a Reuters Breakingviews columnist. The opinions expressed are her own)

- For previous columns by the author, Reuters customers can click on [GU/]

(Editing by John Foley and Katrina Hamlin)

((wei.gu@thomsonreuters.com)) Keywords: BREAKINGVIEWS FELDA

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