Felda Global Ventures
offer 2.19bil shares in IPO
It comprises offer for sale by
Felda of 1.21 billion units
PETALING JAYA: The highly anticipated listing of Felda Global Ventures Holdings Bhd
(FGVH) will see up to 2.19 billion shares being offered under its initial
public offering (IPO) scheduled for end-May or early June.
According to FGVH's draft prospectus exposure to the Securities
Commission, the total IPO shares comprise an offer for sale by the Federal Land
Development Authority (Felda) of up to 1.21 billion shares to local and foreign
institutional and selected investors, and a public issue of up to 980 million
shares.
Of the public issue shares, 286.8 million will be offered to local
and foreign institutional and selected investors; 419.5 million to bumiputra
institutional and selected investors approved by the International Trade and
Industry Ministry; 200.6 million to eligible employees, Felda settlers and
individuals who have contributed to the success of the group; and 72.9 million
to the Malaysian public.
The prices for the FGVH IPO shares, however, have yet to be
determined.
FGVH is the commercial arm of Felda for overseas investments in
the upstream and downstream palm oil business and other agribusinesses
encompassing oil palm and rubber plantation products, soybean and canola
products, oleochemical and sugar products.
Its agricultural and agri-commodities operations now span across
10 markets, including Indonesia, China, India, North America, South Africa and
Turkey.
According to Frost & Sullivan, FGVH is the third largest oil
palm plantation operator in the world based on planted hectarage (other than
planting of immature oil palms) last year.
In Malaysia, the group currently operates 343,521ha of oil palm
plantation estates that managed to produce 5.2 million tonnes of fresh fruit
bunches last year.
FGVH's 49%-owned associate, Felda Holdings Bhd (FHB), is the
largest crude palm oil (CPO) in the world based on production volume. FHB's CPO
production last year stood at 3.3 million tonnes.
FGVH also boasts having MSM Holdings Bhd, the leading
refined sugar producer in Malaysia, as its subsidiary. MSM has a production
capacity of 1.1 million tonnes of sugar products. Last year, its production
volume stood at 958,377 tonnes.
FGVH has seven individuals listed as its directors. Besides chairman Tan Sri Isa Samad, they are
Datuk Sabri Ahmad, Dr Mohd Emir Mavani Abdullah, Datuk Dr Omar Salim, Datuk Yahaya Abdul Jabar, Datuk Shahril Ridza Ridzuan and Datuk Abdul Rahman Ahmad.
FGVH said the gross proceeds from the offer for sale would accrue
entirely to Felda, while those arising from the public issue were expected to be
fully utilised for its core business purposes.
These include selective acquisitions of oil and fats,
manufacturing and logistics businesses; acquisition of plantation assets;
construction or acquisitions of mills and refineries; loan repayment for its
overseas operations; capital expenditures for efficiency and capabilities
improvements; as well as working capital requirements and listing expenses.
For its financial year ended Dec 31, 2011, (FY11) FGVH's net
profit stood at RM1.01bil on revenue of RM7.47bil. This compared with its net
profit of RM844.43mil on revenue of RM5.8bil for FY10, and a net profit of
RM313.4mil on revenue of RM2.88bil.
