1/6/06 (Business Times)  -  SOON-TO-BE-LISTED Rimbunan Sawit Bhd expects a net profit of RM8.5 million for its year ending August 2006 on the back of a RM110.4 million revenue.

The plantation arm of Sarawak’s diversified Rimbunan Hijau Group made a net profit of RM13.1 million and a revenue of RM92.4 million last year. The higher performance in 2005 year was on account of stronger crude palm oil (CPO) prices.

Its managing director David Tiong Chiong Ong said the company also plans to acquire more land including in neighbouring countries such as New Guinea. Its landbank is now confined to Sarawak.

“We also plan to build a biodiesel plant in Sarawak over the next few years with a capacity of processing 100,000 tonnes a year at a cost of between RM80 million and RM100 million,” Tiong told reporters in Kuala Lumpur yesterday.

He spoke at the launch of the company’s prospectus by Plantation Industries and Commodities Ministry deputy secretary-general Mohd Zain Omar.

Rimbunan Sawit will float its shares on June 26 on the main board of Bursa Malaysia Securities Bhd and balloting is scheduled on June 16. Its sole underwriter for the listing exercise is Malaysian International Merchant Bankers Bhd.

Under the initial public offering (IPO), the Sibu-based company will raise RM18 million in proceeds, of which RM15.5 million is for working capital (for oil palm cultivation activities) and RM2.5 million is for listing expenses.

The company will make a public issue of 18 million new 50 sen shares, of which 7 million will be offered to the Malaysian public. It also includes an offer for sale of 33.5 million shares to approved Bumiputra investors.

Rimbunan Sawit owns 13,663ha of plantation estates which are all located in Miri, Sarawak. It also operates a palm oil mill. able to processproduce 80 tonnes of fresh fruit bunches (FFBs) a year.

Out of the 13,663ha, some 80 per cent of its planted oil palms are less than 12 years giving a FFB yield of 13.8 tonnes per ha per year. The company targets to produce 16 tonnes of FFB this year.

With an authorised capital of RM500 million, of which RM55.1 million are issued and fully paid up, the 17-year- old company mainly sell its palm oil products in the domestic market