28/06/2012 (Bernama) - Felda Global Ventures Holdings Bhd's listing represents a culmination of the government's strategic reform initiatives to raise the people's income and enhance Malaysia's global competitiveness.

Its President and Chief Executive Officer Datuk Sabri Ahmad said settlers would gain from higher income through more efficient utilisation of their land which would lead to higher returns.

They will also chalk up premiums from their shares upon listing and annual dividend payouts besides the RM15,000 given to settlers from the initial public offering (IPO) proceeds, he told a media briefing today.

"It's time to reward the settlers after 30 years of hardship," he said.

Felda Global Ventures, the world's third largest oil palm operator, will make a historic debut on Bursa Malaysia tomorrow under the plantation sector, which will also boost the capital market as it is the second largest IPO this year after Facebook Inc.

It will mark the beginning of the company's transformation from a Malaysian champion into a leading conglomerate and a multinational business entity.

Higher income was among the thrusts of the government's Economic Transformation Programme (ETP) unveiled by Prime Minister Datuk Seri Najib Tun Razak.

In addition, the 112,635 Felda settlers will benefit from a trust fund worth RM3.4 billion, which is the value of the 20 per cent of the enlarged share capital of Felda Global Ventures.

Cash dividends declared in respect of the 20 per cent stake or 730 million shares will accrue to Felda settlers.

Sabri said the trust fund could also be used to disburse education loans to settlers' children.

He also reassured settlers that they would not lose their land after listing as their land was not part of the IPO exercise.

The company has about 70 oil palm mills, of which four are among the top 10 in the country, with the mill in Jengka 21 in Pahang having the highest oil extraction rate (OER) at 24 per cent, he said.

Sabri said 37 per cent of the company's trees were young and immature, which means it puts the plantation group in good stead to chalk up sustainable yield.

"We will focus on being an upstream agriculture player, which is a good margin business while our downstream activities will support our upstream business," he said.

He also said there was vast potential for Felda Global Ventures in the biomass business and sugar production for industrial use from various parts of the fresh fruit bunches.

As part of its corporate social responsibility, Felda Global Ventures will also undertake to rehabilitate "traditional villages" on the fringes of Felda estates.

This means non-Felda settlers also stand to gain from the company's expanded focus and operations.

"When the cake gets bigger, you can expand and benefit more people,' he addded.