As rumors earlier, Felda Group’s commercial arm, Felda Global Ventures Holdings Sdn Bhd, will list its sugar business, Malayan Sugar Manufacturing (MSM) on the Main Board of Bursa Malaysia in July.
This was announced by Prime Minister Datuk Seri Najib Tun Razak at Invest Malaysia 2011 conference.
This is first Initial Public Offering (IPO) within Felda Group. The listing would enhance Felda’s leading position in the sugar industry, providing the group with an opportunity to gain recognition in the capital markets and allowing it to realize its investment while retaining control of its asset
Felda Group is Malaysia’s dominant sugar producer controlling 70 per cent of the domestic market. The IPOs may raise more than RM1 billion. This could also make it one of the biggest IPOs for the year.
The listing of MSM is part of New Economic Model, where Malaysia’s state owned investment fund Khazanah Nasional Bhd and other government-linked investment companies (GLICs), are gradually divesting their non-core holdings and non-competitive assets.