Felda eyes over S$3.7b in Malaysia IPO

Malaysian state-controlled palm oil plantation giant Felda Global Ventures is looking to raise more than $3 billion (S$3.7 billion) in an initial share sale in Malaysia by June, a deal that will make it the world’s largest initial public offering so far this year.

The company plans to sell up to 2.19 billion shares, including a public issue of 980 million new shares and an offer for sale of up to 1.21 billion shares for listing on the Bursa Malaysia, according to Felda’s draft prospectus on the Securities Commission website. No further details were provided.

The company has already started tapping potential cornerstone investors for the planned IPO, which will be the third-largest IPO in Malaysia, a source said.

The group may list as early as next month or in June to take advantage of strong palm oil prices, chair Mohd Isa Abdul Samad said on Wednesday.

In October last year, Malaysia prime minister Najib Razak announced during the 2012 Budget that the government plans to list Felda Global by the middle of this year to raise funds “for the company to be a global conglomerate”.

Felda, which accounts for about 18 per cent of Malaysia’s total palm oil output, plans to use the IPO proceeds to buy plantation assets, build or purchase mills and refineries, and target selective acquisitions.

CIMB Investment Bank and Maybank Investment Bank are the joint principal advisers. It has also hired CIMB Investment Bank, Deutsche Bank, JP Morgan Securities, Maybank Investment Bank and Morgan Stanley as joint bookrunners for the institutional offering. http://www.todayonline.com/Business/EDC120428-0000059/Felda-eyes-over-S$3,7b-in-Malaysia-IPO

 

Category: Malaysia