Mega-IPO’s 70% Fall Toward Delisting Is Blow for Malaysia (1)

When Facebook went public in 2012, the world’s next-largest listing that year was a company from Malaysia best known for producing cooking oil.

Morgan Stanley, JPMorgan Chase & Co. and Deutsche Bank AG lined up with the country’s biggest banks to manage the $3.3 billion initial public offer of FGV Holdings Bhd, which outperformed the social media giant in the initial months of trading.

It’s been a flop ever since, with the commodities company poised to delist this month at less than a third of its IPO price, a drop of 70%.

FGV Holdings oil tanker carrying palm oil in the state of Selangor.

Photographer: Samsul Said/Bloomberg

Poor investments ate into profits, ...