29th June, 2012
KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGVH) closed the day on a bullish note at RM5.30 per share after making an impressive debut on Bursa Malaysia at RM5.39 when it chalked up a premium of 84 sen over its offer price of RM4.55.
Dealers said FGVH’s close at RM5.30, for a premium of 75 sen, with 2.615 million lots changing hands, was beyond market expectation.
They said it was a fitting reward for 112,635 settlers who have toiled on their lands for over 30 years as they now owned shares in one of the largest plantation companies in the world with potentially bright prospects given the rising demand for palm oil.
Despite gloomy sentiment on global bourses, the world’s third largest oil palm operator, hogged the limelight yesterday and was the most active counter, reflecting the resilient local stock market.
FGVH shares hovered between a high of RM5.46—up 20 per cent or a 91 sen premium over the offer price of RM4.55, and a low of RM5.24.
The listing of the world’s second largest IPO after Facebook Inc’s float raised US$16 billion, attracted global attention and marked an important milestone for the nation, especially for Felda settlers, who will reap a windfall via the listing.
The impressive debut beats several global IPOs that have been delayed or got rid of, including Formula One’s Singapore IPO that got delayed, and abandoned London luxury jeweller Graff Diamonds’ US$1 billion IPO.
The Felda IPO attracted 58,526 applications for 565.40 million shares from the public, an oversubscription rate of 6.75 times.
It offered 72.96 million shares for public subscription.
FGVH is 49 per cent-owned by Felda Holdings Bhd, the world’s largest crude palm oil producer, and the second-largest palm oil refiner in Malaysia.
It currently operates approximately 350,000 hectares of oil palm plantations in Malaysia and produced 5.2 million tonnes of fresh fruit bunches last year.
Following the impressive listing, FGVH will selectively get into the downstream business including specialty fats and oleochemicals.