May 10 listing will boost group’s market capitalisation to RM21b
FELDA Global Ventures Holdings Bhd, which is due to float its shares on
Bursa Malaysia’s Main Market on May 10, will rank among the local
bourse’s top 20 companies upon listing.
Felda Global will have an
initial market capitalisation (market cap) of RM21 billion when it
makes its Bursa debut, well above its current value of RM3 billion,
Deputy Minister in the Prime Minister’s Department Datuk Ahmad Maslan
said.
It will also be the biggest initial public offering (IPO)
so far this year. Based on yesterday’s closing, Bursa Malaysia’s top 20
list was led by Malayan Banking Bhd with Sime Darby Bhd in second spot,
recording market caps of RM64.9 billion and RM57.7 billion respectively.
With a RM21 billion market cap, Felda Global may come in at number 16 of the bluechip list, sandwiched between Hong Leong Bank Bhd (RM21.7 billion) and PPB Group Bhd(RM20.9 billion).
Ahmad said the listing of the commercial arm of the government-owned Felda (Federal Land Development Authority) will enable it to raise billions of ringgit for expansion. “However, I cannot reveal the number of shares to be floated and the price a piece.
Let the value be announced by the Prime Minister (Datuk Seri Najib Razak),” Ahmad told Felda’s 317 plantation scheme leaders, 3,000 settlers and 1,300 Felda personnel at a briefing on the benefits of the listing here yesterday.
An investment banker said Felda Global’s debut will rejuvenate the local stock market, put Malaysia on foreign investors’ radar and complement last year’s giant debuts of Petronas Chemicals Bhd and Malaysia Marine and Heavy Engineering Holdings Bhd.
Meanwhile, Ahmad said that preparations for the listing are 90 per cent complete, with balloting, prospectus release and other related matters to be announced later. He said Koperasi Permodalan Felda (KPF) will hold its extraordinary general meeting on February 22 to decide whether it will approve the listing.
