Felda Global Ventures Holdings Bhd (FGVH) will proceed with its initial public offering (IPO) without the participation of Koperasi Permodalan Felda (KPF).

Felda chairperson Mohamed Isa Abdul Samad said this was because the discussions between KPF and Felda took too long and might result in Felda missing the most opportune time to list in May or June.    

He said the period was chosen based on expectations that commodity prices, especially crude palm oil, would be at their peaks.

“If we want to wait for the outcome of discussion with KPF, the listing may have to be postponed until next year,” he told a media briefing in Kuala Lumpur today.

However, he said, KPF would still have a chance to take up shares in FGVH through shares acquisition.

Under the original plan, KPF would take up a 37 percent stake in FGVH after disposing of its shares in Felda Holdings.

With KPF out of the picture, Mohamed Isa said the 37 percent stake would now be divided between Felda and a new entity that would look after the interest of the settlers.

“The new entity would then disburse its dividends from FGVH profits to the approximately 112,000 settlers directly,” he said.

He did not reveal the size of the stake that the new entity would have in FVGH.

FVGH’s draft prospectus has been submitted to the Securities Commission and is expected to be available for public viewing by the end of this week.

- Bernama