VERY ATTRACTIVE: 1.92 billion share offering oversubscribed by 30 times
KUALA LUMPUR: SHARES in Felda Global Ventures Holdings Bhd (FGV), the country's biggest plantation company, were oversubscribed by 30 times.
FGV's 1.92 billion share offering o local and foreign institutional investors had been oversubscribed by more than 30 times, sources said.
The retail offering, involving 273.6 million shares, was oversubscribed by more than three times.
"FGV has received overwhelming response with thousands of applications via mail and online from the Employees Provident Fund, Lembaga Tabung Haji, Permodalan Nasional Bhd and Kumpulan Wang Amanah Pencen.
"This indicates strong investor interest in the listing of FGV," the source said yesterday.
FGV, which is the commercial arm of Felda, is set to make its debut on Bursa Malaysia on either June 25, 26 or 28.
Applications for institutional and retail investors for FGV shares closed yesterday.
Last month, FGV shares set aside for investors approved by the International Trade and Industry Ministry also drew huge demand.
The 419.54 million shares for Bumiputera institutional and selected investors had been oversubscribed by 17 times.
The 419.54 million are part of the 1.92 billion shares offered to local and foreign institutional investors.
Collectively, FGV is offering 2.19 billion shares under its initial public offering (IPO).
Institutional investors are expected to pay RM4.65 per share. The retail price, to be fixed after completion of the institutional book building, will be 98 per cent of the institutional price, or RM4.55.
The IPO will raise RM10.5 billion, making it Asia's largest IPO this year and second largest in the world after Facebook.
Out of the RM10.5 billion, FGV will give back RM6 billion to parent Felda.
Felda, which owns 100 per cent of FGV, is selling 63 per cent of its stake under the IPO.
Post-listing, Felda will own 37 per cent, while the 63 per cent will be spread out among settlers (2.5 per cent), Felda employees (three per cent), foreign investors (five per cent) and institutional investors like PNB, EPF, Lembaga
Tabung Haji, Kumpulan Wang Amanah Pencen, Lembaga Tabung Angkatan Tentera, state governments and 12 cornerstone investors.