Lotte Chemical Titan to raise RM5.9 billion in IPO

Kuala Lumpur

SCHEDULED for a July debut on Bursa Malaysia, the initial public offering of Lotte Chemical Titan Holding (LCT) is set to raise RM5.9 billion (S$1.9 billion), marking the country's biggest share offering in five years. The bulk of the proceeds will be used to part finance an integrated petrochemical facility in Indonesia.

A total of 740.5 million shares or 30 per cent of the enlarged share capital of the Korean petrochemical giant will be sold at RM8 apiece.

While about a tenth of proceeds will be channelled towards the building of a new polyolefin plant in Johor, the lion's chunk amounting to RM5.77 billion has been earmarked for a US$3.5 billion integrated petrochemical facility of 100 hectares in Merak, Cilegon, Indonesia. Some pointed out this would result in monies raised in Malaysia being diverted…