HONG
KONG — Facebook’s botched Nasdaq
debut last month may have cast a pall over the global market for new listings,
but the Malaysian palm oil producer Felda Global Venture Holdings still plans
to raise up to $3.2 billion this week in the world’s second-biggest initial
public offering this year, according to a person with direct knowledge of the
deal.
The
decision comes despite a series of new listings being pulled or postponed in
recent weeks, including prominent deals like Formula One’s planned $3 billion
Singapore I.P.O. and an aborted $1 billion offering in Hong Kong by the British
jeweler Graff Diamonds.
Felda,
a state-owned producer of crude palm oil that earns the vast majority of its
revenue within Malaysia, appears to be filling order books as the deal moves
toward final pricing on Wednesday and a trading debut on the Kuala Lumpur
exchange on June 28.
“This
one is going to go through, no question about it,” a person with direct
knowledge of the matter said on Monday. “The combination of the sector and the
country is going to get us there.” The person declined to be named because he
was not authorized to speak publicly.
Total
funds raised by I.P.O.’s in Asia, excluding Japan, have declined 68 percent, to
$13.9 billion, this year from the period a year earlier, the weakest
year-to-date performance since 2009, according to data from Dealogic.
But
Malaysia looks to be a recent bright spot among mostly gloomy global markets.
Shares in Gas Malaysia rose as much as 15 percent at one point on Monday in its
trading debut in Kuala Lumpur, following an I.P.O. that raised 734 million Malaysian
ringgit ($232 million).
The
hospital chain operator IHH Healthcare, owned by the Malaysian state investor
Khazanah Nasional and the Japanese trading firm Mitsui, may raise more than $2
billion in a dual listing in Singapore and Kuala Lumpur next month, various
media reports have said.
Felda’s
prospects are buoyed by the structure of its deal. The company is selling 2.19
billion shares at an estimated price of 4 ringgit to 4.65 ringgit apiece. The
shares being offered represent a maximum 63 percent stake in the firm, and half
of them are existing shares held by the state.
The
firm has locked in cornerstone investors, including the Qatar investment
authority; AIA; Fidelity; Value Partners, a Hong Kong-based funds management
firm; and several Malaysian state-affiliated pension funds, which together will
own nearly a 20 percent stake after the I.P.O., the person with knowledge of
the deal said.
A stake
of about 11 percent will go to state governments in Malaysia, while about 13
percent will be offered to foreign and domestic institutional investors. The
remaining 19 percent stake is being offered to domestic investors, employees
and affiliates of the company, the person said.
CIMB,
Maybank and Morgan Stanley are the
joint bookrunners for the Felda I.P.O., while the same three plus Deutsche Bank and JPMorgan Chase are
the underwriters for the retail offering.
NEIL
GOUGH
Business & Investment Opportunities
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