SAS should benefit from Felda IPO shares offer

KOTA KINABALU, June 19, 2012: Sabah Progressive Party (SAPP) Youth Exco Member Clement Lee demands the present UMNO led-BN government to explain does SAS benefits from the listing of Felda Global Ventures Holdings Berhad (FGVH) which IPO offering period has just closed on 12 June 2012?

According to FGVH's prospectus as stated on page 32 (See picture below), Sabah State government has issued an irrevocable undertakings letter dated 23 May 2012 and lock-up letter dated 28 May 2012 from the State Secretary Office of Sabah to subscribe for 182,407,575 IPO Shares offered as part of the Institutional Offering at the Institutional Price.

FGVH's shares are expected to be listed on the main board of Bursa Malaysia Securities Bhd on 28th June 2012.

The UMNO led-BN government should grab this opportunity from this exercise to benefit the 55,000 SAS investors which for sure will also indirectly benefit the people of Sabah rather than let this opportunity be grabbed by other state governments which do not even possess any Felda oil palm lands at all. Most of the Felda downstream and palm oil business activities are in Sabah with more than 250,000 acres of oil palm plantations in Lahad Datu, Sabah alone.

For example, Gas Malaysia, is the country's sole natural gas supplier to the non-power sector, rose to a high of RM 2.52 before leveling off at RM2.42 on the first day of listing on 11, June 2012. Gas Malaysia Bhd opened at RM2.47, which was 27 sen above its offer price of RM2.20 when it made its debut on the Main Board of Bursa Malaysia on Monday and ended its first trading day at RM2.42, which was a premium of 22 sen above its offer price of RM2.20. SAS could easily benefit if they capture the opportunity from this exercise, Clement Lee said.

The UMNO led-BN government should make sure that SAS benefits from this IPO. Likewise, the management of SAS should also seize this opportunity to capitalize in this exercise. Otherwise SAS investment team which was appointed by UMNO led-BN government simply failed again in capturing a value investment!

The State Government has to inform the people of Sabah who will benefit from the 182,407,575 IPO shares offered to the Sabah State Government.