Australasian palm oil titan to raise 90m in London listing

The largest palm oil producer in Australasia will raise 90m next week in a float on the London Stock Exchange to cash in on an unprecedented boom for the commodity.

New Britain Palm Oil, operator of 40,000-hectares of plantations in Papua New Guinea and the Solomon Islands, plans to use the new expected 88.9m in proceeds to double its plantation area over the next seven to eight years. The listing will value the company at 362m. Executive director Alan Chaytor said now was "the right time" to push ahead with the listing. In the past year, the price of palm oil has nearly doubled, from about $580 per tonne to as much as $950 per tonne.

The increase is due to myriad factors, including rising interest from the energy industry in palm oil as a potential source for biodiesel, as well as massive demand from China and India as an ingredient for a range of foods. Competition for land for the planting of other food crops such as wheat and soy beans has also pushed the price of plantation land up, further boosting the price. "Land competition has become fierce," Mr Chaytor said.

Environmental groups such as Greenpeace have spoken out against the global campaign to stop the spread of palm oil plantations, which are cropping up throughout South-east Asia and is blamed for mass deforestation. New Britain Palm Oil sells almost exclusively to the European market. Under the EU's agreement with the African, Caribbean and Pacific (ACP) nation, to which Papua New Guinea is a signatory, palm oil from the country can be imported duty free into the bloc. The company's shares, which have been listed on Papua New Guinea's Port Moresby Stock Exchange since 1999, will begin trading in London on the full list on 17 December. Kaupthing Singer & Friedlander is handling the float.

Palm oil is used in "about one in every two products in your shopping trolley", said Mr Chaytor, from peanut butter and bread to washing detergent and shampoos. Demand for alternative fuels and population pressures mean that demand is expected to double by 2030.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

SThree: Talent Acquisition Consultant

£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...

Day In a Page

Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

Making of a killer

What motivated a shy student to kill 38 holidaymakers in Tunisia?
UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

Just when you thought your commute couldn't get any worse...

Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

The Real Stories of Migrant Britain

Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
Cheaper energy on the way, but it's not all sunshine and rainbows

Cheaper energy on the way, but it's not all sunshine and rainbows

Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most
Katy Perry prevented from buying California convent for $14.5m after nuns sell to local businesswoman instead

No grace of God for Katy Perry as sisters act to stop her buying convent

Archdiocese sues nuns who turned down star’s $14.5m because they don’t approve of her
Ajmer: The ancient Indian metropolis chosen to be a 'smart city' where residents would just be happy to have power and running water

Residents just want water and power in a city chosen to be a ‘smart’ metropolis

The Indian Government has launched an ambitious plan to transform 100 of its crumbling cities
Michael Fassbender in 'Macbeth': The Scottish play on film, from Welles to Cheggers

Something wicked?

Films of Macbeth don’t always end well - just ask Orson Welles... and Keith Chegwin
10 best sun creams for body

10 best sun creams for body

Make sure you’re protected from head to toe in the heatwave
Wimbledon 2015: Nick Bollettieri - Milos Raonic has ability to get to the top but he must learn to handle pressure in big games

Nick Bollettieri's Wimbledon files

Milos Raonic has ability to get to the top but he must learn to handle pressure in big games
Women's World Cup 2015: How England's semi-final success could do wonders for both sexes

There is more than a shiny trophy to be won by England’s World Cup women

The success of the decidedly non-famous females wearing the Three Lions could do wonders for a ‘man’s game’ riddled with cynicism and greed
How to stop an asteroid hitting Earth: Would people co-operate to face down a global peril?

How to stop an asteroid hitting Earth

Would people cooperate to face a global peril?
Just one day to find €1.6bn: Greece edges nearer euro exit

One day to find €1.6bn

Greece is edging inexorably towards an exit from the euro
New 'Iron Man' augmented reality technology could help surgeons and firefighters, say scientists

'Iron Man' augmented reality technology could become reality

Holographic projections would provide extra information on objects in a person's visual field in real time
Sugary drinks 'are killing 184,000 adults around the world every year'

Sugary drinks are killing 184,000 adults around the world every year

The drinks that should be eliminated from people's diets
Pride of Place: Historians map out untold LGBT histories of locations throughout UK

Historians map out untold LGBT histories

Public are being asked to help improve the map