With to­tal size of up to RM5.9b, list­ing ex­pected be one of big­gest in Malaysia

New Straits Times - - Business -

LOTTE Chem­i­cal Ti­tan Hold­ing has set a ceil­ing price of RM8 a share for its planned ini­tial pub­lic of­fer­ing (IPO), giv­ing it a to­tal size of up to RM5.9 bil­lion, says IFR Asia, cit­ing three peo­ple with knowl­edge of the deal.

The list­ing could be one of the big­gest IPOs in years in Malaysia, which has not seen any list­ing of US$1 bil­lion (RM4.33 bil­lion) and above since the US$1.5 bil­lion IPO of Astro Malaysia in 2012.

A sep­a­rate source con­firmed the ceil­ing price to Reuters, adding the IPO’s in­dica­tive price range had not been de­ter­mined yet.

IFR Asia is a pub­li­ca­tion of Thom­son Reuters.

The sub­sidiary of South Korea’s Lotte Chem­i­cal Corp plans to sell 740.4 mil­lion shares, or 30 per cent of the en­larged cap­i­tal of the com­pany in the IPO.

The IPO also in­cludes a green­shoe op­tion of 55.5 mil­lion shares, or 2.5 per cent of the en­larged cap­i­tal. A to­tal of 684.7 mil­lion shares will be placed to in­sti­tu­tions and re­tail por­tion takes up 55.7 mil­lion. Pre­mar­ket­ing is ex­pected to start next week.

The IPO was orig­i­nally planned for last year, but was shelved fol­low­ing rev­e­la­tions of South Korea’s in­ves­ti­ga­tions into al­leged fraud at Lotte Group.

The pro­ceeds will be used to build a naph­tha cracker plant in In­done­sia.

Credit Suisse, JPMor­gan and May­bank are joint global co­or­di­na­tors on the deal while bookrun­ners are CIMB, HSBC and No­mura. Reuters

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