The US$2bil (RM6.08bil) listing of Felda Global Ventures Holdings Bhd to a Main Market listing on Bursa Malaysia, Asia’s biggest this year, is expected to take place at the end of June. The initial public offering (IPO) is offering up to 2.19 billion shares for institutional and retail investors.
According to the draft prospectus posted on the Securities Commission website, 1.92 billion shares will be offered to the institutional investors while the remaining 283.61 million shares will be offered to retail investors.
The institutional offering involves a total of 1.21 billion 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.
The offer price for the IPO has yet to be determined but the indicative price is RM4.65 per share. The retail price of its share will be established after the institutional price is determined through bookbuilding exercise.
Gross proceeds from the issue are expected to be utilised, 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.
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.
FGV 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.