1/6/2006 (The Star)  - KUALA LUMPUR: Rimbunan Sawit Bhd is looking to further expand its land bank over the next two to three years, chief operating officer Khoo Lian Hong said yesterday. 

The expansion is likely to be concentrated in the company's home state, Sarawak, in the immediate future, but it is also looking at expanding to Papua New Guinea and neighbouring countries, he said at the official launch of the Miri-based oil palm plantation firm’s prospectus yesterday.

The company, en route to a main board listing, is planning to raise RM18mil in gross proceeds from its initial public offering, of which RM15.5mil would be used for expenditure on its existing planted as well as undeveloped land, for the upgrading and maintenance of plant and machinery, and the upkeep and maintenance of buildings and facilities.

The balance RM2.5mil would be used for estimated listing expenses.

Managing director David Tiong said the company was also planning a bio-diesel plant estimated at RM80mil to RM100mil, inclusive of land acquisition, but the project would not be placed under Rimbunan Sawit Bhd, but under its parent group, Rimbunan Hijau Sdn Bhd.

“We are currently at the design stage, but are looking at a capacity of 100,000 tonnes of fresh fruit bunch per annum,” he said, adding that if all went according to schedule, the project would be completed in two years.

On Rimbunan Sawit’s profit forecast for the year ending Aug 31, 2006, Tiong said that the company was well on track to meeting its target of RM15.17mil net profit on revenue of RM110.5mil as its plantations were still young, with 80% of the planted palms being less than 12 years old, which held high yield potential.

Fresh fruit bunch yield is expected to more than double to 16 tonnes per hectare in 2006 from 13.8 tonnes in 2005.

Rimbunan Sawit’s listing, scheduled for June 28, will involve a public issue of 18 million new 50 sen shares, of which seven million will be offered to the Malaysian public at an offer price of RM1 per share.

It would also involve an offer for sale of 33.5 million 50 sen shares to approved bumiputra investors at an offer price of RM1 per share.

Currently, the company owns about 13,600ha of plantation land together with a palm oil mill in Miri, Sarawak.