By Nisha Gopalan in Hong Kong and Jason NG in Kuala Lumpur, Malaysia
Everyone’s heard about this year’s biggest initial public offering, Facebook Inc. Fewer people have heard of the IPO that’s likely to be the world’s second-largest this year: a $3.2 billion deal involving a Malaysian government-owned palm-oil business.
The listing of Felda Global Ventures Holdings Bhd. aims to create a new global powerhouse in the lucrative business of palm oil, an ingredient in a wide range of goods, including lipstick, potato chips and biodiesel fuel. Palm-oil demand rose an average of 7.5% a year between 1991 and 2011, according to consulting firm Frost & Sullivan, and is expected to keep on climbing as incomes rise in places like China and demand for alternative fuels increases.