Lotte revives plans of US$1.4 bln IPO for petrochemical business in Malaysia

07-Jun-17

S outh Korean conglomerate Lotte Group is reviving plans for an IPO of its Malaysian petrochemicals business. The Wall Street Journal reports that Lotte will take orders next week for the offering, which could raise up to US$1.4 bln. Citing people familiar with the matter, WSJ says Lotte is aiming to float Lotte Chemical Titan by the end of the month.

Cornerstone investors including a Malaysian-state owned fund manager and private insurance companies have agreed to take up 20% of the offering, the Journal says. Lotte plans to sell more than 740 million shares on the Kuala Lumpur bourse, with a maximum price of MYR8 a share.

As per edgemarkets.com, plans to list Lotte Chemical Titan were delayed last year after South Korean prosecutors charged the parent company’s chairman and four of his family members with tax evasion and embezzlement. The chairman’s sister was sentenced to three years in prison in January. Lotte’s troubles subsequently escalated when authorities in South Korea launched an investigation into alleged financial wrongdoing at the parent.