Felda Global Ventures's retail offering at RM4.55 a share (Update)

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGVH)
said the initial public offering (IPO) of 2.188 billion shares would
involve an institutional offering of up 1.915 billion shares to
institutions.
According to the prospectus issued on Thursday,
the retail offering will be 273.61 million shares. The retail price is
RM4.55 per share and subject to refund to the difference if the final
retail price is less than the retail price.
The 2.188 billion
shares under the IPO are in conjunction with the listing of the entire
3.648 billion shares of RM1 each on the Main Market of Bursa Malaysia Securities Bhd, comprising an offer for sale of up to 1.208 billion existing shares and a public issue of 980 million new shares.
The
institutional offering of up to 1.915 billion shares comprises of up to
1.208 billion offer shares and 286.85 million issue shares to Malaysian
and foreign institutional and selected investors at the institutional
price to be determined by bookbuilding; and 419.537 million shares to
Bumiputera institutional and selected investors approved by MITI.
The
retail offering of 273.611 million share comprise of 200.648 million
shares to eligible employees, eligible Felda settles and persons who
contributed to the success of FGVH and its subsidiaries; and 72.963
million shares made available to the public.
FGVH reported net
profit of RM1.014bil in the financial year ended Dec 31, 2011 compared
with RM929.367mil in FY2010. Its revenue was RM7.474bil in FY11
compared with RM5.804bil in FY10.
According to the prospectus,
the gross proceeds from the offer for sale of RM5.50 bil would accrue
entirely to the selling shareholders.
FGVH said the gross
proceeds of RM4.459bil arising from the public issue would see FVGH
using 49.1% of RM2.19bil for acquiring plantation assets while RM840mil
would be used ti acquire oil and fats, manufacturing and logistics
businesses.
Another RM780mil would be used to build or buy mills and refineries and RM260mil for loan repayment of its overseas operations.
FGVH
said RM100mil would be used as capital expenditure to increase the
efficiencies while RM129mil would be used as working capital and
RM160mil as estimated listing expenses.

this to be main thread

expected 4.55 RM debut


Just tracking the other threads from few months back

Felda Global said to plan IPO up to RM10.2b
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Felda Global to kick-start book-building from May 31
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Felda Global IPO a market blockbuster?
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Louis Dreyfus a Felda Global cornerstone?
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Felda Global unit’s Q1 net profit rises to RM66.4m
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Bumper ‘harvest’ for Felda settlers
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Felda Global Ventures offer 2.19bil shares in IPO
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'Felda Global may be listed in May or June'
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Felda Global's June listing is on track, says CEO
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Felda Global Ventures shares for institutions oversubscribed more than 15 times

As much as 10% of the palm oil and rubber producer’s enlarged share capital, or 365 million shares worth an estimated US$500mil (RM1.6bil)

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGVH), Malaysia's biggest plantations company, drew orders from institutional investors for more than 15 times the stock available to them in its US$3.2bil (RM10bil) initial public offering (IPO), two people with knowledge of the matter said.

As much as 10% of the palm oil and rubber producer's enlarged share capital, or 365 million shares worth an estimated US$500mil (RM1.6bil), was available to fund managers, said one of the people.

They declined to be identified as the information is private. FGVH is selling shares in Kuala Lumpur in the second-biggest IPO this year after Facebook Inc.

While the slice allotted to institutions is smaller than in similar IPOs in Singapore and Hong Kong, optimism about South-East Asia's economic prospects has also fuelled demand for FGVH's sale.

Companies including Graff Diamond Corp have scrapped IPOs in the past two weeks as Europe's economic turmoil sapped demand for new equity worldwide.

“While other countries will pull their IPOs, Malaysia goes on,” said Abdul Jalil Abdul Rasheed, who helps manage US$3bil as chief executive officer at Kuala Lumpur-based Aberdeen Islamic Asset Management Sdn Bhd. “It's just a general excitement that there's something new and big in the market.”

Final pricing of the IPO is expected to take place on June 13 after an international marketing trip is completed, according to FGVH listing prospectus.

The company was seeking RM4 to RM4.65 per share, two people familiar with the matter said on May 31. - Bloomberg

IPO Fact Sheet

ISSUE STATISTICS
Offer Size: 2,189m shares, comprising
Offer for sale: 1,209b
Institutional offering: 1,209b shares
Public issue of 980m new shares, via
Institutional offering: 706m shares
Retail offering: 274m shares
Public Tranche – 73m shares
Placement Tranche – 2,116m shares
Price: Institutional price: To be determined by way of bookbuilding
Retail price: RM4.55/share
Final retail price: The lower of the Retail Price of RM4.55/share and 98% of the institutional price
NA/share (post IPO): RM1.50
Historical PE: 16.4x 2011 PE (based on retail price of RM4.55/share)
Market Cap (post-IPO): RM16.6b (assuming retail price of RM4.55/share)
Open: 31 May 12 (Institutional offering) / 31 May 12 (Retail Offering)
Close: 13 June 12 (Institutional offering) / 12 June 12 (Retail offering)
Listing: 28 June 12
Joint global coordinators: CIMB Investment Bank Bhd, Maybank Investment Bank Berhad and Morgan Stanley & Co. International
Plc
Joint principal advisers, joint managing underwriters and joint underwriters for the retail offering: CIMB Investment Bank Bhd
and Maybank Investment Bank Berhad

Background

Felda Global Ventures Holdings (FGVH) is a global agricultural and agri-commodities company based in Malaysia with
operations across ten countries. It is the world’s third largest oil palm player based on planted hectarage, about 343,521 ha of
oil palm estates in Malaysia. FGVH was incorporated on 19 Dec 07 as the commercial arm of Federal Land Development
Authority (FELDA) for overseas investments in the upstream and downstream palm oil business and other agribusiness.
Its primary business activities include:
• Plantation businesses
o In Malaysia, FGVH operates about 355,864ha of plantation estates on FELDA-leased land, 323,588ha of which
are oil palm plantations and 10,308ha are rubber plantations. Immature trees make up 17% of FGVH’s oil palm
plantation, while the majority (about 53%) of its oil palm trees is over 21 years old.
o FGVH also has about 14,385ha of landbank in West Kalimantan that is yet to be developed.
o Together with the fresh fruit bunch (FFB) from FELDA settlers and third-party crop, FFB produced from its
plantation estates will be sold to Felda Holdings Berhad (FHB), its 49%-owned associate, for crude palm oil
(CPO) and palm kernel (PK) production. FGVH will subsequently buy back a substantial portion of CPO FHB
produced and resell to external customers, its JVs, FHB’s subsidiaries and its associates.
• Downstream business
o Producing soybean and canola products in Canada, and oleochemical products in the US.
o Through a JV with IFFCO Group, FGVH has interests in palm oil refineries and downstream processing facilities
in Malaysia, Indonesia, China, Turkey and South Africa.
• Sugar business
o Leading producer of refined sugar in Malaysia via its 51% stake in MSM Holdings and 20% stake in Tradewinds.
o 51%-owned MSM Holdings has an annual production capacity of over 1.1m tonnes of refined sugar, which
translates to a 56.9% market share by production volume.
5 June 2012
M A L A Y S I A
PP 14100/03/2012 (029287

Competitive Strengths
• Third largest oil palm plantation operator in the world, with 288,442ha of mature area (representing about 2.15%
market share of global mature planted area). It is also one of the largest FFB producers in Malaysia with a market share of
5.5% in 2011.
• Well-integrated palm oil value chain. Together with the downstream operation of its associate company, Felda Holdings
Berhad (FHB), FGVH’s plantation business is well integrated across the palm oil value chain to increase efficiency and
capture value across the value chain as well as the growing demand for consumer packed products in Malaysia.
• Largest sugar producer in Malaysia. MSM Holdings is the largest refined sugar producer in Malaysia with 56.9% of the
country’s market share. FGVH also owns 20% of Tradewinds, another leading sugar producer in Malaysia.
• Global footprint and diversified products. FGVH has operations across ten countries including Malaysia, Indonesia,
China, Turkey, USA and Canada through its subsidiaries and JVs. In addition to palm oil products, it also produces
soybean, canola and oleochemical products in North America.
• Strong brand recognition from its association with FELDA.

Business Strategies and Future Plans
• Enhancing operating efficiency to improve profitability and margins, by improving FFB production and oil extraction
rates through better estate practice, optimisation of replanting programmes and better cost control.
• Enhancing upstream business focus on palm oil through new planting, but at the same time maintaining crop
diversification in other crops such as rubber and sugar. Going forward, FGVH will focus on acquiring additional landbank
for upstream expansion, particularly in Southeast Asia and Africa.
• Accelerating the turnaround of downstream operations in Canada. FGVH has entered into a tolling agreement with
Bunge ETGO through a JV between its subsidiary, TRT-ETGO, and Bunge Canada, to turnaround its loss-making
downstream operations in Canada by charging tolling fees for processing soybean and canola seeds.
• Further downstream expansion through acquisitions and investments in refinery assets, consumer packed product plants
and bulking facilities in markets such as Southeast Asia, North America, China and India to capture the rising demand in
these countries.

Dividend Policy
FGVH expects to adopt a dividend payout ratio of at least 50% of its profit after tax attributable to shareholders.

Key Risks
Loss of FELDA-leased land. FGVH leases its plantation land from FELDA, and if it loses the right to use this land, it would
have significant impact on its FFB production and thus its revenue stream and earnings.

Impact of replanting programme on production. FGVH’s replanting scheme may impact its total FFB production, which
would affect FGVH’s revenue and margins.

Fall in CPO price. Adverse movements in CPO price would impact FGVH’s revenue and margins for its upstream business,
and negatively impact FGVH’s earnings.

Adverse weather conditions such as tsunamis, El Nino and La Nina phenomena and their consequences (eg forest fires,
flooding) would have an adverse impact on FGVH’s plantation operations

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Felda Said To Raise $3.3 Billion In Malaysian Share Sale
By Chong Pooi Koon, Joyce Koh and Chan Tien Hin - Jun 14, 2012 11:17 AM GMT+0800
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Felda Global Ventures Holdings Bhd. raised about 10.4 billion ringgit ($3.3 billion) in this year’s second-biggest initial public offering after Facebook Inc. (FB), 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 4.55 ringgit each, said the people, asking not to be identified as the information is confidential. The Kuala Lumpur-based company had marketed the shares at 4 ringgit to 4.65 ringgit. 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 $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 $3 billion as chief executive officer of Aberdeen Islamic Asset Management Sdn. 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.

Same as Sime
The IPO values Felda at 14.2 times estimated full-year earnings, one of the people said. That’s similar to local rival Sime Darby Bhd. (SIME), the world’s largest palm oil company by acreage. Singapore’s Golden Agri-Resources Ltd. trades at 9.3 times estimated earnings, data compiled by Bloomberg show.
A statement will be made on the pricing in a few days, Felda Global spokeswoman Izan Hussain said by phone yesterday.
Felda Global is selling $1.1 billion of shares to 12 so- called cornerstone investors, including the country’s biggest pension funds, according to a term sheet for the deal. Those buyers have pledge to hold the shares for a minimum 180 days in return for guaranteed allocations, the document showed.
The plantations group manages estates for the Federal Land Development Authority, a Malaysian government agency. It has about 355,864 hectares (878,984 acres) of plantations in Malaysia in addition to land in Indonesia. The company also has palm oil refining businesses in China, Indonesia, Turkey and South Africa, according to its share sale prospectus.

Facebook Falls
The IPO is the Southeast Asian nation’s biggest since Petronas Chemicals Group Bhd. (PCHEM) raised a record 12.8 billion ringgit in 2010, according to data compiled by Bloomberg. Facebook, the world’s largest social-networking company, completed a $16 billion IPO last month. Its shares have fallen 28 percent from the offer price.
IHH Healthcare, Asia’s biggest hospital operator controlled by Khazanah Nasional Bhd., secured investors including AIA Group Ltd. this week for a $2 billion IPO in Kuala Lumpur, people familiar with the matter said June 12.
Malakoff, the country’s largest independent power producer, is inviting proposals from banks to raise about $1 billion, two people with knowledge of the matter said yesterday. Billionaire T. Ananda Krishnan is considering a $1.5 billion offering for Malaysian pay-TV broadcaster Astro All Asia Networks Plc later this year, a company official said in March.
Malayan Banking Bhd., CIMB Investment Bank Bhd. and Morgan Stanley are managing Felda Global’s IPO as joint global coordinators, according to the prospectus. JPMorgan Chase & Co. and Deutsche Bank AG are also involved.
To contact the reporters on this story: Chong Pooi Koon in Kuala Lumpur at [You must be registered and logged in to see this link.]; Joyce Koh in Singapore at [You must be registered and logged in to see this link.]; Chan Tien Hin in Kuala Lumpur at [You must be registered and logged in to see this link.]

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Felda Global said to raise US$3.3b in IPO
by hlk on Thu 14 Jun 2012, 17:35

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

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Felda Global Ventures IPO oversubscribed 6.75 times
by hlk on Fri 15 Jun 2012, 21:37

KUALA LUMPUR: The public portion of Felda Global Ventures Holdings Bhd's (FGVH) initial public offering (IPO) comprising 72.963 million shares was oversubscribed by 6.75 times.
A total of 58,562 applications for 565.4 million shares were received from the Malaysian public, Malaysian Issuing House Sdn Bhd (MIH) said on Friday.
A
total of 36.48 million shares have been set aside for allotment under
the Bumiputera category, representing 50% of shares offered for public
subscription while the balance of 36.48 million shares were allotted
under the public category.
"A total of 21,829 applications for
195.69 million issue shares were received under the Bumiputera
category, representing an oversubscription of 4.36 times.
"Under
the public category, 36,706 applications for 369.71 million shares were
received for an oversubscription of 9.13 times," it said in a statement
today.
The joint global coordinators and joint bookrunners have
confirmed that the institutional offering of 1.92 billion shares has
been fully placed out, MIH said.
"The institutional price was fixed at RM4.55 per share.
"Accordingly,
the final IPO price for the retail offering is fixed at RM4.45 per
share and refund of the difference of 10 sen per share will be
dispatched to successful retail applicants within 10 market days
starting today," it added. - Bernama

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Felda Global Ventures confident of a successful listing
by hlk Today at 18:44


KUALA LUMPUR: Felda Global Ventures Holdings (FGVH) is confident of a successful listing on Bursa Malaysia, saying its strong business model would enable it to face global economic uncertainties.
Chairman Tan Sri Mohd Isa Abdul Samad
said under FGVH's initial public offering (IPO), the institutional
offering of 1.92 billion shares was oversubscribed by 45 times.
Meanwhile, Malaysian Issuing House Sdn Bhd (MIH) said in a statement on Friday that the IPO's public portion of 72.963 million shares was oversubscribed by 6.75 times.
"This
is a good sign for FGVH's listing on the Main Board on June 28," Mohd
Isa told reporters at the presentation of FGVH scholarships here today.

Tan Sri Mohd Isa Abdul Samad (second from right) chating with some of the scholarship receipients. - BERNAMA FGVH is however mindful of the uncertain global economic situation amid the eurozone debt crisis, he said.
"We
are aware of this, but we are confident because FGVH has its own
strengths and because of the approppriate steps we have taken. "If FGVH
is not listed now, we are also not sure when the world's economic
problem will end, in fact no one can forecast the economic situation,"
he said.
Meanwhlie, Mohd Isa said FGVH is in discussions with
commodity giant Louis Dreyfus on the form of collaboration between the
two, with a decision to be made before the listing on Bursa Malaysia.
"This
strategic collaboration can not only strengthen the downstream segment
but also reduce our dependence on upstream activities," he said.
FGVH Group President Datuk Sabri Ahmad
said to strengthen its downstream segment, FGVH will diversify its
income sources and provide a stable income for Felda settlers as crude
palm oil (CPO) prices are relatively volatile.
"The price of CPO
was RM3,500 per tonne in the last three weeks but now it is RM2,900 per
tonne," he said, adding he expected the prices to rise and remain
strong in the second half of this year due to lower output.
Sabri
also said that a cyclical slowing of output, low soybean production in
Brazil and Argentina as well as steady demand from India and China will
help push up CPO prices.
The listing of FGV would make it the largest IPO in Asia this year, the largest IPO in the world this year after Facebook and the largest IPO in Malaysia since Petronas Chemical Group in November 2010.
Assuming a retail price of RM4.55, the offering will raise approximately RM10.5 billion. - BERNAMA

Louis Dreyfus confirms strategic partnership with Felda Global
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this news piece , makes it the same trading price action as "gasmalaysia"
after reporting a lower Q on Q , expect this to open lower as it goes, our advantage is when buying up from the retracement

FGVH posts lower Q1 pre-tax profit of RM280m
by hlk Yesterday at 21:22
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