Wednesday, June 27, 2012
FGV shares soar 19% in market debut
Felda Global Ventures Holdings' (FGV) share price records a 19 percent increase barely twenty minutes after opening on Bursa Malaysia today.
Opening at RM4.55, FGV shares were up 18 percent to RM5.41 at 9.19am, making the company the most traded stock in the market.
FGV is Asia's biggest IPO (initial public offering) and the world's second biggest, behind that of Facebook.
The Malaysian palm oil giant has already attracted a high-powered list of cornerstone investors, including the global investment arm of the Qatar Investment Authority and Hong Kong insurance company AIA Group Ltd.
FGV has estimated it would raise RM9.93 billion (US$3.12 billion) from the IPO, which has been heavily oversubscribed.
Ranked as the world’s third-largest palm oil plantation operator, FGV is an arm of the Federal Land Development Authority (Felda), a government agency that provides land to the rural poor.
FGV currently sells palm fruit or crude palm oil and processed palm oil to third parties.
According to FGV, funds raised from the listing will be used to replant mature oil palms and further expand into downstream businesses to create a more self-contained global player.
[More to follow]