The price of Felda Global Ventures Bhd (FGV) shares today rebounded after falling to a new post-IPO low of RM4.57 - just two sen above its issuing price of RM4.55.

It closed at 5pm today at RM4.73, five sen about yesterday’s closing price of RM4.68.

FGV share price has been on a continuous down slide since mid-July - flirting around the RM5 level for the last one month.

This is despite a fresh injection of funds by the Employees Provident Fund into FGV by increasing its stake over the past week from 5.4 percent to 6.98 percent.

The share price fell below the psychological mark of RM5 on Sept 4 and has since been on a downward trajectory until today.

FGV, which is the main investment arm of the Federal Land Development Authority (Felda), has been touted by federal government as the world's second biggest initial public offering behind social media Facebook this year, aimed at benefitting Felda settlers at large.

Opening at RM5.39, FGV shares soared 20 percent to RM5.46 on the first day of trading on June 28.

Market analysts cautious

However, some market analysts are cautious about the performance as half of the Felda estates are over 20 years old and the local palm oil industry is facing increased competition from Indonesia.

isa samad 061009 smile Despite its sliding share price, Federal Land Authority (Felda) chairperson Mohd Isa Abdul Samad ( left ) at a press conference last month had said that there was no cause for concern for settlers.

"I think there is nothing for them to be worried about because it only went down a little and now it's going back up. In a few months' time, I trust that the confidence (in FGV) will continue."

The plantation giant also declared an interim dividends of 5.5 sen per share end of last month, amounting to a payout of RM400 for each settler.

Meanwhile, Facebook has been trading at about half of its US$38 initial public offering price.