The Facebook (NASDAQ:FB) debacle has put a freeze on IPOs not only in the U.S. but also globally. Still, it now looks as though the environment is getting better.
The shares of Felda Global Ventures, which went public last night in Malaysia, was up 16% by the end of trading. In all, the company raised $3.1 billion. The lead underwriters included CIMB Investment Bank, Maybank Investment Bank and Morgan Stanley (NYSE:MS).
Felda is a massive producer of palm oil, with 880,000 acres of plantations in Malaysia. Basically, the IPO is part of the country’s privatization process. With the proceeds from the offering, the government will get 55% of the cash, with the remaining sum going to fund operations. The palm oil business has been growing at a very nice pace.
Felda’s performance is certainly encouraging. Asia has been a tough market for IPOs, as seen with the withdrawals of deals such as Formula One and Graff Diamonds.
– Tom Taulli, InvestorPlace.com