RM10b IPO will turn FELDA into global player, says Najib
UPDATED @ 03:48:04 PM 31-05-2012
KUALA LUMPUR, May 31 — The planned June 28 listing of FELDA Global Ventures Holdings (FGVH) will turn the “domestic organisation into a global player” as the world’s third largest palm oil operator in the world with a market capitalisation of RM16.6 billion, Datuk Seri Najib Razak said today.
The prime minister said the listing has attracted the interest of commodities companies such as Louis Dreyfus Commodities Asia and Vitol Group who have entered into strategic alliances that will open up international market possibilities for the 56-year-old federal land development scheme.
“This fulfils our aim of transforming FELDA from a domestic and local organisation to making the quantum leap as a global player that is important and successful,” he said when launching the prospectus for the initial public offering (IPO) that is set to raise around RM10.5 billion.
The IPO will be the largest in Asia since February 2011 and the second biggest this year behind social media network Facebook’s float which raised US$16 billion (RM49.6 billion).
“But I believe FELDA will perform better than Facebook,” Najib, who is also finance minister, said in his speech.
The IPO of 2.188 billion shares is currently based on an indicative retail price of RM4.55 a share with an institutional offering of 1.915 billion shares while settlers and employees of FELDA will gain access to 200.6 million shares, or a 5.5 per cent stake, out of a total retail offering of 273.61 million.
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 RM9.959 billion to be raised from the listing exercise, with another half a billion ringgit available through an overallotment option of 109.4 million shares.
FVGH reported a net profit of RM1.01 billion last year compared with RM929.4 million in 2010. Its revenue was RM7.5 billion in 2011 and has been growing at a compounded annual rate of 61 per cent sine 2009.
According to the prospectus, RM5.5 billion in gross proceeds from the sale would accrue entirely to the selling shareholders with RM4.5 billion going into capital expenditure.
Putrajaya is forging ahead with FELDA’s controversial public listing despite criticism from some settlers and the opposition who claim that it will shortchange some 112,000 FELDA settlers nationwide.
Najib has assured the settlers that the listing would yield profits, and has announced a RM1.69 billion windfall for all settlers and staff throughout the country ahead of the FGVH listing.