31 May 2012
Felda IPO Update: Felda Global Ventures Holdings launches IPO prospectus today, retail price at RM 4.55, total 2,188 million shares for sale, only 73 million shares available to the public, application date from 31 May till 12 June, listing on 28 June 2012
Felda Global Ventures Holdings Bhd's (FVGH) initial public offering (IPO) of 2.188 billion shares would raise nearly RM10bil based on an indicative retail price of RM4.55 a share.
According to the prospectus issued on Thursday, the institutional offering would be 1.915 billion shares to institutions and the retail offering of 273.61 million shares.
The indicative retail price is RM4.55 per share and subject to refund to the difference if the final retail price is less than the retail price.
This would see a total of RM9.959bil to be raised from the listing exercise, of which RM5.50bil will accrue entirely to the vendors. The remaining RM4.459bil arising from the public issue would be fully utilized for the core business of FGVH.
The prospectus said the 2.188 billion shares under the IPO are in conjunction with the listing of the entire 3.648 billion shares of RM1 each on the Main Market of Bursa Malaysia Securities Bhd, comprising an offer for sale of up to 1.208 billion existing shares and a public issue of 980 million new shares.
Under the IPO, the institutional offering of up to 1.915 billion shares comprises of up to 1.208 billion offer shares and 286.85 million issue shares to Malaysian and foreign institutional and selected investors at the institutional price to be determined by bookbuilding; and 419.537 million shares to Bumiputera institutional and selected investors approved by MITI.
The retail offering of 273.611 million share comprise of 200.648 million shares to eligible employees, eligible Felda settles and persons who contributed to the success of FVGH and its subsidiaries; and 72.963 million shares made available to the public.
FVGH reported net profit of RM1.014bil in the financial year ended Dec 31, 2011 compared with RM929.367mil in FY2010. Its revenue was RM7.474bil in FY11 compared with RM5.804bil in FY10.
According to the prospectus, the gross proceeds from the offer for sale of RM5.50 bil would accrue entirely to the selling shareholders.
FVGH said the gross proceeds of RM4.459bil arising from the public issue would see FVGH using 49.1% of RM2.19bil for acquiring plantation assets while RM840mil would be used to acquire oil and fats, manufacturing and logistics businesses.
Another RM780mil would be used to build or buy mills and refineries and RM260mil for loan repayment of its overseas operations.
FVGH said RM100mil would be used as capital expenditure to increase the efficiencies while RM129mil would be used as working capital and RM160mil as estimated listing expenses.