Asian Plantations boosts its coffers

Shares in Asian Plantations, one of our 2011 tips of the year, bounced back strongly after a share placing, and are now 40 per cent up on our recommendation. The Malaysian palm oil plantation developer took advantage of strong demand for its shares by raising £16m in a placing at 220p a share. The funds, which are coming from new and existing investors, will be used to buy more land in Sarawek to meet the company's target of owning at least 20,000 hectares by the end of 2011. Discussions are ongoing on three parcels of land totalling 12,000 hectares. Management hopes to complete two deals by the third quarter of the year. Asian Plantations already owns 15,000 hectares.