Kuala Lumpur - AFP
Shares in Malaysian palm oil giant Felda Global jumped 18.46 percent on its stock market debut on Thursday, defying global economic doldrums with the world\'s second-largest IPO this year after Facebook. Felda Global opened at 5.39 ringgit ($1.69) on the Bursa Malaysia, well up from the institutional price of 4.55 ringgit in the flotation, which raised $3.12 billion. The firm is the world\'s third-largest palm oil company by acreage. Felda Global described the listing as \"historic\", adding that it marked the beginning of its transformation from a \"Malaysian champion into a leading regional conglomerate and multinational business entity\". Despite the dark shadow that the eurozone debt crisis continues to cast over global financial markets, and the jitters sparked by Facebook\'s disastrous listing last month, analysts said Felda shares remained well supported. The price of palm oil has tripled in price in the last decade, and the industry is the fourth-largest contributor to the Malaysian economy. Palm oil is a key ingredient in soap and a range of food products whose consumption is predicted to soar in coming years, fuelled by growth in Asian economies. Felda Global President Sabri Ahmad said at a pre-listing briefing Wednesday the company would expand to southeast Asian countries and Africa to grow oil palm, rubber and sugar cane. \"Demand (for palm oil) is good in China and India. Food business is quite resilient in a recession,\" he said. Funds raised from the listing will be used to replant mature oil palms and further expand into downstream businesses to create a more self-contained global player. Facebook raised $16 billion from its IPO but its shares have plummeted since its debut. The volatile economic environment has forced the delay of other major offerings across Asia including a planned $2.5 billion Formula One listing in Singapore.