Lotte Chemical Titan's IPO to raise RM5.9 billion, RM8 per share

KUALA LUMPUR: Lotte Chemical Titan Holding Bhd, the biggest initial public offering (IPO) since 2012 in Malaysia, will be channeling RM4.9 billion, or more than 80% of its IPO proceeds raised to the construction of an integrated petrochemical facility in Banten province, Indonesia.

Based on an retail issue price of RM8 per share, Lotte is expected to raise a total of RM5.9 billion. It is en route for listing on the Main Market of Bursa Malaysia on July 11.

"Titan is a Malaysian company and it is only right if we list the company here in Malaysia," said Lotte senior vice president Philip Kong on channeling the proceeds of listing for a project abroad.

"The reason why we are expanding in Indonesia because they are a huge importer of polyolefins and the market is huge there. It will contribute significantly to the success of Lotte going forward," he told reporters at a press conference after the group's prospectus launch here today.

Lotte produces polyolefins, comprising polyethylene and polypropylene and olefins, comprising ethylene and derivatives such as butadiene, tert-butyl alcohol, benzene and toluene.