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Friday April 27, 2012
PETALING JAYA: There will still be strong investor interest in the soon-to-be-listed Felda Global Ventures Holdings Bhd (FGVH) despite Koperasi Permodalan Felda (KPF) not participating as a major shareholder in the listed entity, market observers told StarBiz.
Several plantations analysts said shares offered under FGVH’s initial public offering would still likely be oversubscribed, with strong demand expected from both institutional and retail investors. This is despite the fact that the non-participation of KPF as a major shareholder would result in lower valuation for FGVH.
“Without KPF, the market capitalisation of FGVH is expected to be much smaller,” an analyst said.
“FGVH would emerge as the second-largest plantations counter on the local stock exchange after Sime Darby Bhd; and that will definitely attract a lot of interest,” an analyst from a local brokerage explained.
FGVH chairman Tan Sri Isa Samad on Wednesday told journalists that the listing of the entity slated for end-May or early-June was on track, but there would be no participation from KPF as a major shareholder in the listed entity.
The draft prospectus of FGVH’s listing confirmed this.
Banking sources also said that Isa along with advisors of the listing were currently overseas on a roadshow promoting the listing of FGVH to potential investors.
Isa had said it was timely to list FGVH within the next two months on the back of strong crude palm oil (CPO) prices that were currently hovering above RM3,000 per tonne.
Analysts said the relatively bullish outlook for the commodities market would stand FGVH in a good stead when the politically-linked organisation made its debut on the stock market.
They expect the average CPO price to be within the range of RM3,200 to RM3,300 per tonne for 2012. The average CPO price for 2011 was RM3,274 per tonne.
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