Shares of Singapore-listed Indofood Agri Resources (IFAR.SI) rose as much as 2.5% on Wednesday after it said palm oil plantation unit PT SIMP’s listing will not dilute earnings as much as analysts had feared.
 
At 10:29 a.m., shares of Indofood Agri were 1.8% higher at $1.66 with over 10.7 million shares changing hands.
“The company clarified that the dilution on earnings will not be has bad as many analysts had expected. Moreover, their net asset value will be higher post IPO, so their shares are rebounding a little after falling quite a bit,” said a local trader.
 
Indofood Agri said its earnings per share in 2010 will be 835 rupiah ($0.12) after the IPO, down from 974 rupiah previously. However, its net asset value per shares after the listing would rise to 7,843 rupiah from 7,605 rupiah.
 
Indofood Agri shares have fallen about 19% since it announced the initial public offering of its unit PT SIMP in May, which triggered concerns the listing would dilute its earnings per share