Bloomberg News

Felda Targets $6.9 Billion Market Value on Malaysia Listing

February 14, 2012

(Updates with analyst’s comment in fourth paragraph.)

Feb. 14 (Bloomberg) -- Felda Global Ventures Holdings Bhd., Malaysia’s biggest plantation operator, aims to file documents this week for the nation’s biggest initial share sale in more than a year, the parent company’s chairman said.

The palm oil, cocoa and rubber producer may have a market capitalization of about 21 billion ringgit ($6.9 billion) upon listing, Mohd Isa Abdul Samad, head of Felda Holdings Bhd., said in a telephone interview yesterday, confirming a Bernama report. Kuala Lumpur-based Felda Global should be listing on May 10, he said, without disclosing the amount the unit is seeking to raise.

Felda Global aims to raise at least $1 billion, two people with knowledge of the matter said Oct. 24. That would be Malaysia’s third-biggest offering, after Maxis Bhd. in 2009 and Petronas Chemicals Group Bhd.’s record 12.8 billion-ringgit IPO in 2010. The share sale follows government calls for larger local companies to list.

“Felda can achieve the market capitalization target, given that the fact that commodity plays in the region are still considered quite attractive,” Ker Chung Yang, an analyst at Phillip Futures Pte., said by phone from Singapore. “Rubber and palm oil -- these are the things that can attract the foreign investors. It’s an industry that’s booming.”

Global Coordinators

Morgan Stanley, CIMB Investment Bank Bhd. and Maybank Investment Bank will be joint global coordinators, the people said, asking not to be identified as the information was private. Deutsche Bank AG and JPMorgan Chase & Co. will help as book runners, they said.

Felda Global had aimed to file its draft prospectus with the Securities Commission on Feb. 10, Isa said, without explaining the delay.

The IPO will create a “blue-chip” and “global conglomerate” that will attract international investors to the Malaysian stock market, Prime Minister Najib Razak said in a speech announcing the share sale on Oct. 7.

Felda Global manages palm oil and rubber estates for Federal Land Development Authority, a Malaysian government agency. It has more than 880,000 hectares (2.2 million acres) of estates and has businesses in the U.S., Canada, Australia, China, Pakistan, Sri Lanka and South Africa, according to its website.

The company is also the largest shareholder of MSM Malaysia Holdings Bhd., the Southeast Asian nation’s biggest sugar refiner.

Sime Darby Bhd., the world’s biggest listed palm oil producer, has a market capitalization of about 57.9 billion ringgit, with a total landbank of 873,222 hectares in Malaysia, Indonesia and Liberia, according to its website. Sime also has operations in property, industrial equipment, motors, energy and utilities, and healthcare.

--Editors: Indranil Ghosh

To contact the reporters on this story: Manirajan Ramasamy in Kuala Lumpur at rmanirajan@bloomberg.net; Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net

To contact the editors responsible for this story: James Poole in Singapore at jpoole4@bloomberg.net; Rebecca Keenan in Hong Kong at rkeenan5@bloomberg.net


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