SINGAPORE - Indonesia palm-oil firm Bumitama Agri's planned $244-million initial public offering here has attracted strong demand from funds and wealthy investors looking to tap into the region's booming resources sector.

Its offering follows many IPOs returning to the Singapore market this year, as Asian shares rallied on signs of an improving global economy.

The placement was 31 times subscribed, the highest oversubscription rate for a corporate offer since Yangzijiang Shipbuilding's 2007 IPO, said Mr Matthew Song, HSBC's head of equity-capital markets for South-east Asia.

HSBC, along with DBS Bank, are the joint-issue managers, bookrunners and underwriters of the IPO.

"(The IPO) attracted more than 150 investors but the majority are long-only funds. There's huge demand from high-net- worth individuals and family offices as well," he said.

Bumitama said in a prospectus that it plans to sell 327.4 million shares, including an over-allotment option, at $0.745 each - the top of an indicative price range of $0.675 to $0.745.

When it lists next Thursday, it will join other palm-oil firms listed in Singapore, including Wilmar International and Golden Agri Resources.

Bumitama has one of Asia's youngest palm-oil plantations and owns 190,000ha of land.

Only 100,000ha have been planted with oil palms, leaving room for growth, Mr Song said.

The firm said a total of 124.8 million shares were placed to cornerstone investors, including Hwang Investment Management, UOB Asset Management and Wii, a wholly owned subsidiary of Wilmar International.