LISTED on June 28,2012, FGV Holdings Bhd
was then the world’s second-largest public issue for the year, having successfully raised RM10.4bil, and was ranked as the 25th largest market capitalisation company on Bursa Malaysia with a value of more than RM16bil.
Some RM6bil from the initial public offering (IPO) proceeds went to Felda itself, while FGV raised RM4.33bil in net proceeds from the public issue. In its first financial year-end post-listing in 2012, FGV had total shareholders’ funds of RM6.1bil, while its total cash balance stood at RM5.69bil and total debts, excluding the land lease agreement (LLA), was just under RM2.44bil. Effectively, FGV had net cash of RM3.25bil back then.
Fast forward into its latest quarterly results and one would be able to observe how the financials of the former KLCI index-linked stock has deteriorated in just over eight-and-a-half years. Shareholder funds have dropped to just above RM4bil or down by 34%. Its cash balance has been reduced by RM3.84bil or by two-thirds to just RM1.84bil while total debts have doubled to RM4.88bil.
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