Titan on the run to sell Shares

09-May-05

Titan Chemicals, Malaysia's largest integrated olefins and polyolefins producer and Southeast Asia's second largest polyolefins producer will start its roadshow on May 19 to market its shares to foreign investors in Singapore, Hong Kong and Europe. Titan Chemicals founded in 1988, is a joint venture between PNB Equity Resources Corporation, a wholly owned subsidiary of Permodalan National Bhd, and the Chao Group International. Its products - propylene and ethylene - are building blocks in the production of a diverse range of consumer and industrial products, including flexible packaging, fibres and automotive parts. It has received positive feedback from a pre-marketing exercise in the run-up to one of the largest initial public offerings in the country scheduled for next month. It is offering its shares to foreign institutional investors at about 3% to 5% premium that is over its indicative share price of between RM2.30 and RM2.50. Commerce International Merchant Bankers Bhd is the financial adviser for the proposed IPO. Goldman Sachs are the joint global coordinators and joint book-runners. Mayban Securities Bhd and DBS Bank Ltd are also joint book-runners. Initially scheduled to list on Bursa Malaysia last month, Titan Chemicals' IPO exercise was pushed to mid-year due to a lackluster stock market. Its prospectus is expected to be launched next month. Stronger sales are expected this year due to a sharp rise in both the prices and demand of the products of Titan Chemicals in China.