Making Its mark as top IPO destination
by Ronnie Teo, firstname.lastname@example.org. Posted on July 15, 2012, Sunday
Malaysia: Making its mark in certain sectors
With corporate listings in unique sectors such as plantations and healthcare, Malaysia is set to expand its reach on the global platform, taking full advantage of the high demand and lack of supply in these respective industries.
FGV as the ‘main attraction’ for Malaysia this year remains the most-talked about IPO, being the second largest share sales globally after Facebook and the largest domestic IPO of the year in Malaysia.
FGV was established in 2007 as an investment arm under Felda’s overseas expansion strategy.
Today, the group became a global agricultural and agri-commodities company with operations spanning across 10 countries.
“It attracted more than 30 times the allocation available for institutional investors,” noted HwangIM’s Ng.
“The listing of state-run FGV is aimed at creating a new global powerhouse in the lucrative business of palm oil and is poised to position itself as the top five in the world.
“The strong IPO demand gives investors some confidence at a time of jittery market conditions.” Its core business can be classified into upstream plantation, downstream businesses and sugar. In addition, FGV also owns a 49 per cent associate stake in Felda Holdings Bhd, which is the biggest palm oil miller in Malaysia by processing capacity.
FGV officially listed on Bursa Malaysia on June 28 at an opening price of RM5.39 per share. The stock closed on RM5.30 per share on that day, with 261. 58 billion shares traded.
For its financial year ended Dec 31, 2011, FGV’s net profi t stood at RM1.01 billion on the back of RM7.47 billion in revenue.
This showed a marked improvement compared with its net profit of RM844.43 million and revenue of RM5.8 billion in 2010.