* Felda Global's IPO expected to take place at end-June
* Indicative offer price of 4.65 ringgit per share for
* Embarked on overseas roadshow for cornerstone investors
(Updates IPO size to more than $3 bln after banker
confirmation, adds Felda Global CEO's comments)
By Yantoultra Ngui
KUALA LUMPUR, April 30 Malaysia's state-owned
Felda Global Ventures Holdings is likely to make its IPO at the
end of June, according to two sources, in what is expected to
raise more than $3 billion and be one of the biggest flotations
in the world this year.
The third-largest oil palm plantation operator by planted
area has started offering its initial public offering (IPO)
shares to indigenous "Bumiputra" investors at an indicative
price of 4.65 ringgit ($1.53) a share, two officials with direct
knowledge of the matter, told Reuters on Monday.
Bumiputra, meaning "sons of the soil" in the Malay language,
refers to the majority ethnic Malays and other indigenous people
in the country who benefit from a decades-old affirmative action
policy that favours them in housing, education and business.
At the indicative price, the 419.5 million shares reserved
for Bumiputra investors, would be worth a total of some 1.95
"Bookbuilding process will follow thereafter," said one of
The second official said: "What institutional investors are
getting is not known yet, but indigenous Bumiputra investors
will get a refund should institutional investors get less than
the indicative price." The officials did not wish to be
identified as they are not authorised to speak publicly on the
Felda Global's chief executive officer Sabri Ahmad confirmed
the indicative price for "Bumiputra" investors when contacted.
"The closing for the offer is this Friday," he told Reuters.
The second official added that Felda Global has embarked on
a roadshow overseas to lure international cornerstone investors
to participate in the listing.
The IPO consists of 2.19 billion shares, including a public
issue of 980 million shares and an offer for sale of 1.21
billion shares, according to Felda Global's draft prospectus
filed late on Friday.
Bankers had initially said the IPO would be about $2 billion
in size, but that estimate has been revised upwards. A banker
directly involved in the deal said the IPO's size would now be
more than $3 billion. There is a "greenshoe" option of a further
109.4 million shares if the offer is oversubscribed.
The listing could be one of the first after national
elections that are expected to be held in June despite the
weekend's violent electoral reform protest.
Plans to list Felda Global sparked resistance from some of
the 113,000 farmers who own part of the company and fear a loss
of control in an asset in which they've invested for
generations. A legal challenge they filed has been dismissed and
the listing was recently approved by the farmers' cooperative.
CIMB Investment Bank, Maybank Investment Bank and Morgan
Stanley are the joint global coordinators for Felda
Global's listing, while JPMorgan and Deutsche Bank
are joint bookrunners.
($1 = 3.0430 ringgit)
(Additional reporting by Niluksi Koswanage; Editing by Stuart
Grudgings and Muralikumar Anantharaman)