We are neutral on the news that Wilmar is one of the cornerstone investors as its potential investment is insignificant relative to its shareholders' funds. We maintain our Underperform call on IOI Corp and Neutral call on Wilmar.

IOI Corp's 36%-owned Indonesian plantation associate, Bumitama Gunajaya Agro Group (BGA group), may raise as much as S$221.7m (US$176m) in a Singapore initial public offering, Bloomberg reported, citing a person with knowledge of the matter. The shares will be offered at between 67.5 to 74.5 Singapore cents apiece, the person said, declining to be named as the information is not public. BGA has agreed to sell 124.8m shares to cornerstone investors which include Wilmar International.