FGVH profit up 9pc to RM2b in 2011
KUALA LUMPUR, April 27 — Felda Global Ventures Holdings (FGVH) made a gross profit of RM2.1 billion last year, a 9.1 per cent increase over the previous year thanks to a stronger performance from its plantation division according to its draft prospectus released yesterday.
FGVH is currently a wholly owned subsidiary of Felda (Federal Land Development Authority), a statutory body under the Prime Minister’s Department, but is headed for an initial public offering (IPO) by June.
Figures contained in the prospectus show that revenue for the group rose from RM5.8 billion in 2010 to RM7.47 billion in 2011 due to hefty increases in its plantation and downsteam businesses.
Its plantation division saw revenue grow from RM2.67 billion in 2010 to RM3.3 billion last year while its downstream business grew from RM989 million to RM1.89 billion during the same period.
Its sugar business, which it acquired in 2009, saw revenue increase marginally from RM2.15 billion in 2010 to RM2.3 billion last year.
FGVH had about RM1.8 billion in cash and cash equivalents as of the end of 2011 the prospectus shows while borrowings amounted to RM762 million.
The draft also showed that FGVH will have a land lease agreement liability of RM5.3 billion if it had entered into a land lease agreement at the end of last year.
The prospectus did not specify the total amount FGVH seeks to raise via the IPO nor the price of the shares.
It said that the proceeds will be used to increase production capacity and efficiency as well as expand business activities.
Some 60 per cent of FGVH’s enlarged share capital will be offered to investors in the IPO with the lion’s share allocated to institutional investors.
The listing of the plantation giant was promised by the prime minister as a “windfall” for the Felda settlers, a traditional vote bank for Umno. It is seen as important to ensuring continued support from the settlers in the upcoming general election which is widely expected to be held in June.
The draft prospectus is available for viewing on the Securities Commission website.