The Malaysian palm oil firm, Felda Global, surged 20 per cent in its trading debut in Kuala Lumpur yesterday, as investors cheered on the world's second-largest initial public offering (IPO) after Facebook's botched float and the company pledged stronger profits in the coming months.
The company raised $3.1bn (£2bn) in a politically charged listing that will see hundreds of thousands of plantation farmers and family members reap a windfall through IPO-related handouts and discounted shares, helping Prime Minister Najib Razak ahead of the election he must call by next March.
The state-owned Felda is the third-largest producer of palm oil, which is widely used in products ranging from pies, cakes, to soaps and cosmetics.
It is also used as a biofuel, with all diesel in Malaysia required to include 5 per cent palm oil.
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