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Wed 30 May 2012 06:01 PM

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Qatar to take part in Malaysian major's $3bn IPO

Qatar Holding said to be cornerstone investor in listing of Felda Global Ventures Holdings

Qatar to take part in Malaysian major's $3bn IPO
(Photo for illustrative purposes only)

Qatar Holding, a unit of the Gulf nation’s sovereign wealth fund, has agreed to take part in the planned $3bn listing of Malaysia’s Felda Global Ventures Holdings as a cornerstone investor, a source with direct knowledge of the deal told Reuters.

It would be the first time a Middle Eastern sovereign fund has acted as a cornerstone in a Malaysian initial public offering (IPO).

The world’s No.3 palm plantation operator is preparing for its market debut at the end of June, one of the world’s largest after Facebook’s $16bn listing in mid-May.    

“They are taking quite a substantial stake,” the source said, declining to elaborate further as the talks are confidential.    

The entry of Qatar Holding marks the tenth cornerstone committed for Felda Global’s IPO. Other cornerstones include Louis Dreyfus, Fidelity Investments, Hong Kong’s Value Partners and AIA Group.     

The source added that Felda Global is expected to launch its IPO prospectus on May 31. Felda Global officials could not be reached for comment.    

The IPO consists of 2.19 billion shares, including a public issue of 980 million shares and an offer for sale of 1.21 billion shares, according to Felda Global’s draft prospectus filed on April 27.   

Southeast Asia has seen a burst of IPOs since the start of the year, despite the protracted euro zone debt crisis and the debacle over Facebook’s recent market debut.    

CIMB and Maybank, as well as Morgan Stanley, are the joint global coordinators for Felda Global’s listing, while JPMorgan and Deutsche Bank are joint book runners.

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