KUALA LUMPUR, June 28 (Bernama) -- Rimbunan Sawit Bhd, which was listed Wednesday on the Main Board of Bursa Malaysia, will invest in enhancing its plantation facilities to increase production.

"From the proceeds gained from the initial public offer (IPO) exercise, we would be able to invest into enhancing our plantation capabilities, machinery and human capital," its managing director David Tiong Chiong Ong said at the listing ceremony.

He said the company plans to embark on the development and cultivation of oil palm on the company's existing plantable land of about 18.6 percent in the second half of 2006.

The company is also looking into sourcing for suitable land banks and aim to increase its plantation land bank for oil palm cultivation in the next four years, he said.

He said the move will increase the fresh fruit bunches (FFB) supply to Rimbunan Sawit's palm oil mill.

On the company's expansion, Tiong said they will concentrate in the Malaysian market.

"We plan to expand to Papua New Guinea and other countries but we did not set a time frame for it," he said.

The plantation-based counter opened with a premium of 13 sen at RM1.13 over its offer price of RM1.00 on the Main Board this morning.

-- BERNAMA