27 April 2012
Felda IPO Update: Draft prospectus indicated a total 2.19 billion shares to be offered, 72.96 million issue shares to be made available to the Malaysian public
FELDA Global Ventures Holdings Bhd (FGVH), enroute to a Main Market listing on Bursa Malaysia by end of next month or early June, is offering up to 2.19 billion shares in its initial public offering (IPO) for institutional and retail investors.
According to its draft prospectus posted on the Securities Commission website late yesterday, the 2.19 billion shares comprise 1.92 billion shares, or 52.5 per cent, from its enlarged issued and paid-up capital, which will be offered to the institutional investors. Another 283.61 million shares, or 7.5 per cent, will be offered to retail investors.
The institutional offering involves a total of 1.21 billion offer shares and 286.85 million issue shares allocated for Malaysian and foreign institutional investors, while 419.54 million issue shares are set aside for Bumiputera institutional and selected investors approved by International Trade and Industry Ministry, at the institutional price.
The retail offering involves 200.65 million issue shares to be offered to eligible employees, Felda settlers and those who have contributed to the success of FGVH and its subsidiaries, while 72.96 million issue shares will be made available to the Malaysian public.
After its listing exercise, FGVH will have an enlarged share capital of up to 3.65 billion.
The offer price for the IPO has yet to be determined. FGVH, in its prospectus, said the retail price of its share will be established after the institutional price is determined through bookbuilding exercise.
FGVH said it will not receive proceeds from the offer for sale, but the selling shareholders are entitled to the proceeds.
Gross proceeds from the issue are expected to be utilised, among others, for the acquisition of oil and fats, manufacturing and logistics businesses; construction or acquisition of mills and refineries; loan repayment for overseas operation; capital expenditure and working capital.
FGVH’s listing will be the biggest IPO so far this year. Upon listing, the company will be among the local bourse’s top 20 companies.
FGVH is the commercial arm of Federal Land Development Authority (Felda).
It is a global agricultural and agri-commodities company with operations across 10 countries. The group is involved in three main business segments, namely plantations business, downstream business and sugar business.
It currently operates 343,521ha of oil palm plantation estates in Malaysia. Its 49 per cent-owned associate, Felda Holdings Bhd, is the world’s largest producer of crude palm oil, while its subsidiary, MSM Holdings Bhd, is the country’s leading refined sugar producer.
According to global business research and consulting firm Frost & Sullivan, FGVH is the world’s third largest oil palm planter.