Lotte Group plans to list Malaysian petrochemical unit in an initial public offering

07-Apr-17

South Korean conglomerate Lotte Group plans to list its Malaysian petrochemical unit in the third quarter, company filings show, in an initial public offering that sources say could raise as much as US$1.5 bln, as per Reuters. In a filing on the Korea Exchange on Tuesday, the conglomerate's unit, Lotte Chemical Corp said it plans to list subsidiary Lotte Chemical Titan Holding on the Bursa Malaysia stock exchange. Lotte Chemical said it plans to offer up to 740.48 million shares in its Malaysian unit, with an over-allotment option for up to 55.54 million shares.

The target IPO date has been listed as the third quarter of 2017 and said proceeds will be used to build a naphtha cracker in Indonesia and a polypropylene plant in Malaysia, as well as to expand its cracker facility in Malaysia. Maybank Investment Bank Bhd, Credit Suisse and J.P. Morgan are joint global coordinators on the deal, while CIMB Investment Bank, HSBC and Nomura are joint bookrunners. Lotte Chemical said the size and pricing of IPO is yet to be determined.