KUALA LUMPUR, June 16 (Xinhua) -- Lotte Chemical Titan (LCT), Malaysia's largest producer of olefins and polyolefins products, is seeking to raise 5.9 billion ringgit (1.38 billion U.S. dollars) in an initial public offering (IPO), which is expected to be the largest in Malaysia since August 2012 and the largest in Southeast Asia since May 2013.
The company plans to sell the shares at 8 ringgit apiece, its president and chief executive officer Lee Dong Woo announced on Friday, adding proceeds from the IPO will be used to finance a 15.5-billion ringgit integrated petrochemical facility in Indonesia to increase the ethylene production by up to 1,000 kilo tons per annum.
"Indonesia is a net importer for polyolefins, we see a huge market there and we expect it to contribute significantly to the group," he told reporters after launching the prospectus event.
LCT is wholly held by Lotte Chemical Corp., one of Asia's top chemical company. Kim Gyo Hyun, Lotte Chemical Corp.'s president and chief executive officer, said the group aims to make LCT the No. 1 petrochemical in Southeast Asia.
When asked about the reason to choose Malaysia as the IPO place, Lee said LCT is a Malaysian company and a majority of the company business is in Malaysia and Indonesia. Besides, he said the group has also secured Malaysian cornerstone investors.
En route to its listing on July 11, LCT has secured five cornerstone investors, namely Permodalan Nasional, Maybank Asset Management, Maybank Islamic Asset Management, Eastspring Investments and Great Eastern Life Assurance (Malaysia).
