Felda Global Ventures Holdings Bhd, Malaysia's biggest plantations company, drew orders from institutional investors for more than 15 times the stock available to them in its US$3.2 billion initial public offering, two people with knowledge of the matter said.

As much as 10 per cent of the palm oil and rubber producer's enlarged share capital, or 365 million shares worth an estimated US$500 million, is available to fund managers, said one of the people. They declined to be identified as the information is private. Felda Global is selling shares in Kuala Lumpur in the second-biggest IPO this year after Facebook Inc.

While the slice allotted to institutions is smaller than in similar IPOs in Singapore and Hong Kong, optimism about Southeast Asia's economic prospects has also fueled demand for Felda's sale. Companies including Graff Diamond Corp have scrapped IPOs in the past two weeks as Europe's economic turmoil sapped demand for new equity worldwide.

"While other countries will pull their IPOs, Malaysia goes on," said Abdul Jalil Abdul Rasheed, who helps manage US$3 billion as chief executive officer at Kuala Lumpur-based Aberdeen Islamic Asset Management Sdn Bhd "It's just a general excitement that there's something new and big in the market."

Final pricing of the IPO is expected to take place on June 13 after an international marketing trip is completed, according to Felda Global's listing prospectus. The company is seeking RM4 (US$1.26) to RM4.65 per share, two people familiar with the matter said on May 31.

Felda Global is also selling US$1.1 billion of shares to 12 so-called cornerstone investors, including Fidelity Investments and Value Partners Group Ltd, according to term sheet for the deal. Such investors typically pledge to hold the shares for a set period of time in return for guaranteed allocations.

Izan Hussain, Felda Global's head of corporate communications, declined to comment.

Felda Global manages estates for the Federal Land Development Authority, a Malaysian government agency. It has about 355,864 hectares (878,984 acres) of plantations in Malaysia in addition to land in Indonesia. It also has palm oil refining businesses in China, Indonesia, Turkey and South Africa, according to its prospectus.

Malayan Banking Bhd is managing the offering along with CIMB Investment Bank Bhd and Morgan Stanley, prospectus said. JPMorgan Chase and Co and Deutsche Bank AG are also involved. - Bloomberg