Children of Felda Settlers Association (Anak) claims that the selling of Felda Global Ventures (FGV) shares by stakeholders within a short time shows that the stock is not strong, so it should not have been listed in the first place.

NONE Anak chairperson Mazlan Aliman ( left ) said organisations such as Lembaga Tabung Haji and Civil Service Pension Fund (KWAP) have already begun to dump their FGV stake.

Even companies, such as Genting Bhd which had an initial 12 percent share in FGV, he added, have also began to reduce their stake.

"The situation now is desperate for FGV. When everyone sells this shows that people have no confidence in FGV.

"This doesn't include the shares that have been sold by the settlers. Many have already sold them," said the chief of the PAS-linked NGO.

Mazlan added that FGV was not strong enough because it failed to involve Koperasi Permodalan Felda (KPF) during the initial public offering (IPO).

FGV was listed on Bursa Malaysia on June 28, with an opening price of RM4.55 before it soared to RM5.46 in a single day.

Foreign investors lure fails

The IPO saw FGV raking in RM9.93 billion in funds, with RM4.43 billion set aside for FGV's business expansion and the rest going to NONE shareholders.

However, FGV's price dropped early this month on news that Tabung Haji, which had acquired close to four million share units, would be disposing of almost half.

FGV's price last Thursday dipped to under RM5, but recovered to RM5.12 yesterday.

Mazlan also claimed that FGV's plan to entice foreign investors has failed to improve its share price to RM6, as originally pledged.

"Even though there are attempts to bring foreign companies on board, this is not working," he said, predicting that the share price might slide further after the Hari Raya celebrations.

This, he said, was because Pakatan Rakyat-led state governments would review their lands leased to FGV by Felda Holdings.

"Kedah Menteri Besar Azizan Abdul Razak has said that FGV did not inform the state government how the Felda lands are going to be leased in three years' time without first discussing it with the state government.

"So, if the state government takes action it may cause FGV shares to drop further," mazlan added.