Friday 29 Mar 2024
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KUALA LUMPUR (April 8): Prime Minister Datuk Seri Najib Tun Razak must take decisive action to reverse the substantial drop in the share price of Felda Global Ventures Holdings Bhd, since its listing about three years ago.
 
DAP national publicity secretary Tony Pua said the over 50% drop in Felda's Global's (fundamental: 1.55; valuation: 1.4) share price since the company's listing in June 2012 had resulted in Felda settlers seeing losses from their investments in the stock.

"Datuk Seri Najib Razak as both finance minister and prime minister who promised Felda settlers the stars during the listing exercise, must therefore take decisive action to reverse the decline in the company's share price," Pua said to reporters at the Parliament lobby today.

Felda Global was listed in June 2012 at RM4.55 a share. Today, the stock fell one sen or 0.5%  to settle at RM2.09 at 12:30pm market break.

At 2:52pm, Felda Global remained at RM2.09 for a market capitalisation of RM7.62 billion. The stock had fallen 4% this year, versus the FBM KLCI's 5% gain.

Pua said 94,219 Felda settlers had each bought 800 shares under Felda Global's initial public offering (IPO) allocation.

According to Pua, they were offered the shares at RM4.45 each, which was a 10 sen discount to the retail IPO price of RM4.55.

Based on Pua's calculations, he said Felda settlers who had been holding Felda Global shares since the IPO, had lost an estimated RM177 million.
 
Felda Global's financials have weakened. The company told the exchange that net profit fell to RM306.37 million in financial year ended Dec 31, 2014, from RM982.25 million a year earlier.

Revenue was however higher at RM16.43 billion, from RM12.57 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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