Published: Thursday June 28, 2012 MYT 8:53:00 AM
Updated: Thursday June 28, 2012 MYT 11:24:17 AM
Felda Global world's 2nd largest IPO this year, opens at RM5.39
By Joseph Chin
KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGVH) opened at RM5.39, or 84 sen above its institutional price of RM4.55 sen, in its much-anticipated debut on the Main Market of Bursa Malaysia on Thursday. The retail price was RM4.45.
There were 21.14 million shares transacted at the opening bell.
UOB Kay Hian Malaysia Research said based on the IPO price of RM4.55 (institutional price), FGVH was valued at 17.6 times 2011 price-to-earnings.
Public Investment Bank Research has an Outperform on FGVH and a fair value of RM5.44.
FGVH is the second-largest oil palm plantation company in terms of planted area and the largest sugar refiner in Malaysia. Its 49%-owned Felda Holdings Bhd is the world's largest crude palm oil (CPO) producer and the second-largest palm oil refiner in Malaysia.
Under its listing exercise, there were 58,526 applications for 565.40 million issue shares from the public for 72.96 million issue shares available for public subscription, or an oversubscription rate of 6.75 times.
It raised a total RM9.93bil from its initial public offering (IPO) based on an institutional price of RM4.55 per share and a final retail price of RM4.45 per share.
Of the total RM9.93bil raised from the IPO, RM5.5bil would accrue entirely to selling shareholders. The balance of RM4.43bil arising from the public issue would be fully utilised for the core business of FGVH.