Lotte mulls an IPO for its Malaysian chemical unit
Published: 06 Jan. 2016, 20:24
The unit Lotte Chemical Titan Holding could sell shares in Kuala Lumpur as soon as the second half of this year, the people said, asking not to be identified as the information is private.
Malaysia has hosted only one initial public offering of more than $500 million in the past two years, the $885 million share sale from power producer Malakoff in April 2015, according to data compiled by Bloomberg.
First-time share sales in the country raised $1.28 billion last year, compared to $1.25 billion in 2014, the data show.
Lotte Chemical hasn’t yet decided whether to proceed with a listing of the Malaysian unit, and details such as the fund-raising amount haven’t been set, the people said.
A Kuala Lumpur-based spokesman for Lotte Chemical Titan didn’t respond to phone calls and an e-mail seeking comment, while Lotte Group said in an emailed statement that it can’t verify any potential plans for the Malaysian unit to pursue an initial public offering.
Plastics produced by Lotte Chemical Titan include polyethylene, used in shopping bags and toys, as well as polypropylene, which can be found in battery casings and car parts. The company also makes olefins that are part of the manufacturing process for rubbers and detergents.
Lotte Chemical, when it was called Honam Petrochemical, bought Titan Chemicals in a 2010 all-cash deal valued at $1.25 billion and delisted the company the next year. Bloomberg
with the Korea JoongAng Daily
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