Avenue Capital still hopes for Felda deal

  • Business
  • Thursday, 22 Jul 2004


AVENUE Capital Resources Bhd has yet to give up hopes of underwriting the flotation of Federal Agriculture and Land Development Authority Bhd (Felda), which has been put on hold by the Government. 

“There are two major issues, commercial and social, which the Government has to consider before listing the company,” group managing director Tengku Zafrul Aziz told StarBiz after the company AGM's in Kuala Lumpur yesterday. 

Tengku Zafrul Aziz

The Government had last year announced the proposal to list Felda on Bursa Malaysia and appointed Avenue Capital as the lead adviser for the exercise, but later postponed the plan pending further studies. 

Zafrul said although the listing was commercially viable, there were other issues related to Felda settlers that the Government had to resolve before the flotation could go ahead. 

Felda is currently under the jurisdiction of the office of Deputy Prime Minister Datuk Seri Najib Tun Razak. 

Zafrul said the Government had not indicated whether it would still press ahead with the listing, but it had requested “a lot of information” from the company on the initial public offering. 

At a press conference earlier, he said Avenue Capital's corporate finance operations had progressed well, having been involved in between 30 and 35 deals since they were started in December last year. 

Gooi Hoe Soon

“We are doing well considering that we started from a zero base to become quite competitive. We have also built up a diverse client base and have been involved in various deals,” he said. 

The firms major deals include the placement of Tenaga Nasional Bhd’s stake in YTL POWER INTERNATIONAL BHD, Khazanah Holding's covered warrants, and Syarikat Prasarana Sdn Nasional Bhd's bond issue. 

Zafrul said the company was in the midst of clinching at least two medium-sized deals, but declined to elaborate. 

On the equity market, Avenue Capital deputy chairman Gooi Hoe Soon said the company's emphasis was to continue to strengthen the institutional base. 

“Currently, 60% of our clients are retail investors and we expect to balance the ratio of our retail and institutional investors by the financial year ending 2006,” he said. 

Gooi said that to this end the company had recently beefed up its research and dealing teams to reflect its drive to target institutional investors. 

 AVENUE :  [Stock Watch]  [News]

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