Felda Global Ventures confident of a successful listing

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.

[You must be registered and logged in to see this image.] 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