FGV Annual Report 2012

A n n u a l R e p o r t 2 0 1 2 L a p o r a n T a h u n a n 11 It was a listing exercise that placed FGV on the world map, given its status as the second largest Initial Public Offering (IPO) in the world at the time of listing. It was also the largest IPO in Asia in 2012, the largest public offering in Malaysia since November 2010 and the third largest IPO in the history of the Malaysian stock exchange. On top of it all, the exceptional response by both domestic and international investors surpassed market expectations and drew the world’s attention to our company, our capital market, and our nation. Given all of the above, not surprisingly post-listing, our company emerged as among the top 25 companies on Bursa Malaysia and the top ten listed plantation companies in the region. A NEWMILESTONE The IPO received an overwhelming response with its public portion of 72.96 million shares oversubscribed by 6.75 times. This is despite the IPO being launched amidst a troubled global economic environment caused by the US recession, a brewing European financial crisis and the slowing of growth in China. However, the market responded positively to the opportunity to invest in a company involved in the recession-proof food business, anchored by solid credentials and operating within a robust ASEAN economic climate. The listing raised RM10.45 billion, winning Malaysia tremendous international recognition and acclaim for its vibrant and resilient capital market. Together with subsequent Malaysian IPOs, FGV’s listing boosted Malaysia’s standing as the year’s second largest market for IPOs in Asia. Malaysia emerged as also the fourth largest in the world, besting even London and Hong Kong to establish it as an attractive capital market destination. Apart from raising capital for FGV’s growth and expansion, the success of the IPO extended positive benefits to people and organisations within and without its universe. The selling shareholder, the Federal Land Development Authority (FELDA), received RM6 billion from the proceeds. Of this, RM1.7 billion went directly to 112,365 FELDA settler-smallholders in the form of RM15,000 windfall cash pay-outs. The resultant wealth created injected a multiplier effect into the local economy, benefitting national income and supporting the development of rural towns like Jengka, Temerloh, Jempol and Bahau. These rural towns are growing at least ten times as a result of the distribution of wealth from the IPO.