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Felda Global Ventures Bhd. is looking to raise more than $3 billion in IPO

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By P.R. VENKAT – THE WALL STREET JOURNAL

KUALA LUMPUR, Malaysia—Malaysian state-controlled palm-oil plantation company Felda Global Ventures Bhd. is looking to raise more than $3 billion in an initial share sale, a deal that would make it one of the world’s largest initial public offerings this year.

The company plans sell to up to 2.19 billion shares and list on the Bursa Malaysia stock exchange by June, according to Felda’s draft prospectus on the website of Malaysia’s Securities Commission. No further details were provided in the prospectus.

A person familiar with the situation said the company already has started tapping potential cornerstone investors for the planned IPO, which also will be the third-largest IPO in Malaysia after state-owned oil firm Petroliam Nasional Bhd.’s unit Petronas Chemicals Group Bhd. raised $4.14 billion in 2010 and Maxis Bhd.’s nearly $3.5 billion offering in 2009.

Felda’s offering comes as social-networking company Facebook Inc. plans to go public in the U.S. with a $10 billion IPO as early as mid-May, which would make it the biggest IPO this year.

The Malaysian company’s planned IPO also comes as volatile stock markets take a toll on another planned Southeast Asian IPO. Singapore’s wealthy Kum family on Friday postponed its 509 million Singapore dollars ($410 million) IPO of its hotel properties due to lukewarm investor interest.