PETALING JAYA: Boustead Plantations Bhd, the plantation arm of Boustead Holdings Bhd, which is en-route for listing on Bursa Malaysia's Main Market, will focus on acquiring plantation estates and reserve land primarily in Malaysia over the next three years.

Chairman Tan Sri Lodin Wok Kamaruddin said the plantation arm was interested in growing its plantation assets to 100,000 hectares from 71,000 hectares currently.

He said at present there were several proposals that were being considered by the company.

"The priority is to focus on Malaysia, but if some good opportunities emerge in neighbouring countries such as Indonesia or Papua New Guinea, we will certainly consider them," he told a press conference after the launch of the company's prospectus today.

The acquisition, to cost about RM400 million, would be funded by the RM1.049 billion to be raised as proceeds from the Initial Public Offering (IPO).

A total of RM928 million will accrue to Boustead Plantations and the balance of RM121 million to Boustead Holdings based on the IPO price of RM1.60 per share.

Upon listing, the total enlarged and paid-up share capital of Boustead Plantations will be RM800 million comprising of 1.6 billion shares.

The listing comprises the sale of up to 76 million existing shares and a public issue of 580 million new shares to be issued to retail and institutional investors before the over-allotment option.

He also said RM500 million from the listing proceeds would be utilised for repayment of bank borrowings while another RM100 million would be used for replanting.

On the outlook for crude palm oil (CPO) prices, Lodin said the company expected prices to improve within the third or fourth quarter, driven by demand from consuming countries such as Pakistan and India, especially with the onslaught of the Ramadhan and Aidil Fitri celebration.

"CPO prices are expected to hover between RM2,700 and RM2,800 per tonne," he added.

To date, Boustead Plantations owns 41 oil palm estates and 10 palm oil mills in Malaysia with 20 estates in Peninsular Malaysia, 12 in Sabah and nine in Sarawak.

-- Bernama