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Shared wealth

PNB and LTH to be largest cornerston­e investors in listing of FGVH


KUALA LUMPUR: Permodalan Nasional Bhd (PNB) and Lembaga Tabung Haji (LTH) will emerge the two largest cornerston­e investors in the listing of Felda Global Ventures Holdings Bhd (FGVH) on the Main Market of Bursa Malaysia slated for June 28.

Felda chairman Tan Sri Isa Samad said both investment institutio­ns would equally holds 7.5% stake each in FGVH.

“The total local cornerston­e investors that also include the Employees Provident Fund, Kumpulan Wang Persaraan, the Armed Forces Fund Board among others would hold 19.8% stake in FGVH.

“This is in line of what the Prime Minister has reiterated that the listing would not just benefit the Felda settlers but also the general public.

“As you know the shareholde­rs of the these cornerston­e investors are made up of various levels of the society,” he told reporters after the launch of the FGVH prospectus by Prime Minister Datuk Seri Najib Tun Razak yesterday.

FGVH, the world third largest oil palm plantation manager, will offer 2.188 billion shares with an indicative retail price of RM4.55 per share.

Assuming that the over-allotment option of 109.4 million shares is exercised, the IPO is expected to raise a gross proceed of RM10.5bil with market capitalisa­tion of RM16.6bil.

The total shares offered represente­d 63% of the company enlarged capital of 3.65 billion shares of which 1.3 billion shares were by way of an offer for sale by Felda and 980 million shares through a public issue by FGVH.

A total 1.915 billion shares would be offered to institutio­ns. FGVH is also offering 273.61 million shares to retail investors of which 200.6 million shares would be offered to eligilble Felda settlers and employees. There are also allocation­s for state government­s representi­ng about 10.84% of the enlarged share capital

or 395.6 million shares.

The FGVH IPO is slated to be the largest in Asia this year and the second largest in the world after Facebook.

Malayan Banking Bhd and CIMB have been appointed to undertake the listing exercise, along with Morgan Stanley, JP Morgan and Deutsche Bank.

As for foreign cornerston­e investors, Mohd Isa said the total would be less than 5% of FGVH shareholdi­ng.

Some of foreign institutio­ns mentioned were Qatar Investment, Loius Dreyfous Commoditie­s and Vitol Group.

Mohd Isa said FGVH was confident that the over-allotment option would be exercised at the IPO as it had received overwhelmi­ng response during the pre-ipo road tour.

On the expected performanc­e of the IPO based on the sluggish external economic environmen­t, CIMB Investment Bank Bhd chief executive officer Datuk Charon Wardini Mokhzani said the IPO was timely as investors were looking for a safe haven especially in the emerging markets because of the eurozone crisis.

“And FGVH could be considered a safe haven as it has good track record and assets supported by good prospects,” he said.

On pro-forma basis, FGVH made a profit after tax of over Rm1bil on the back of Rm7.5bil revenue last year that represente­d a compounded annual growth rate of 61% since 2009.

The company is involved in the production of palm oil, rubber, soy, canola, sugar and oleochemic­als.

 ??  ?? Benefit for all: Isa (left) with other board of directors of Felda. He says FGVH’s listing will not just benefit the settlers but the general public too.
Benefit for all: Isa (left) with other board of directors of Felda. He says FGVH’s listing will not just benefit the settlers but the general public too.

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