Felda Global said to raise US$3.3b in IPO

Felda Global Ventures Holdings Bhd raised about RM10.4 billion (US$3.3
billion) in this year’s second-biggest initial public offering after
Facebook Inc, said three people with knowledge of the matter.

Felda
Global, the world’s third-largest operator of palm oil plantations,
sold shares to institutional investors at RM4.55 each, said the people,
asking not to be identified as the information is confidential.

The Kuala Lumpur-based company had marketed the shares at RM4 to RM4.65.

Demand for stock from fund managers exceeded supply by more than 29 times at that price, two people said.


Malaysian IPOs are defying the market turmoil brought on by Europe’s
debt crisis, which caused companies to scrap at least US$4.2 billion of
first-time sales in the past month.

Hospital
operator IHH Healthcare Bhd. and power company Malakoff Bhd. are
pursuing IPOs that may help Kuala Lumpur’s bourse widen its lead in
Asian deals this year.

“Felda is in a sweet spot because it is a large offering in a Malaysian context with a very cash-rich base of investors,”

Abdul
Jalil Abdul Rasheed, who helps manage US$3 billion as chief executive
officer of Aberdeen Islamic Asset Management Sdn Bh in Kuala Lumpur,
said yesterday.

“We see other IPO markets being weak, but Malaysia has pulled through.”

Graff
Diamonds Corp and Formula One are among companies whose plans to go
public in Asia were undone in the past month by stock-market
volatility. Powerica Ltd, an Indian company backed by Standard
Chartered Plc’s private equity unit, shelved plans for an IPO, people
familiar with the deal said yesterday. - Bloomberg