News

June 12, 2008

Equatorial Palm Is Listing In A Fundamentally Strong Market, According To Most Analysts

By Sally White

Opportune or opportunistic? That is the question about Equatorial Palm. This is the latest addition to the very limited offering in London of quoted companies with exposure to the booming agriculture markets. Over the last couple of years, London’s small palm plantation sector has done very nicely indeed, although profit taking has now brought it down from the highs. There have also lately been a few worries about some of the more ambitious palm oil demand growth forecasts that have begun to creep in, especially now that global criticism of the use of food oils for biofuel is hotting up.

Equatorial Palm is a minnow compared to London’s last palm debut: the largest stock in the sector, integrated palm group New Britain floated on London’s main market last December. Its price has more than doubled since then, making its market capitalisation over three times the size of its nearest peer, at around £900 million. Equatorial Palm is seeking only to raise £15 million. While its size can’t be assessed until trading actually starts later this month, it’s likely to be down at the...