KUALA LUMPUR • South Korean conglomerate Lotte Group plans to list its Malaysian petrochemical unit in the third quarter, company filings show, in an initial public offering (IPO) that sources say could raise as much as US$1.5 billion (S$2.1 billion).
The listing could be one of the biggest IPOs in years in Malaysia, which has not seen any listing of US$1 billion and above since the US$1.5 billion IPO of Astro Malaysia Holdings in 2012.
In a filing on the Korea Exchange on Tuesday, the conglomerate's unit, Lotte Chemical, said that it plans to list subsidiary Lotte Chemical Titan Holding on the Bursa Malaysia stock exchange.
Lotte Chemical said that it plans to offer up to 740.48 million shares in its Malaysian unit, with an over-allotment option for up to 55.54 million shares.
It listed the target IPO date as the third quarter of this year and said that proceeds will be used to build a naphtha cracker in Indonesia and a polypropylene plant in Malaysia, as well as to expand its cracker facility in Malaysia.
The IPO was originally planned for last year but was shelved following revelations of South Korea's investigations into alleged fraud at Lotte Group.
Lotte Chemical said that the size and pricing of the IPO is yet to be determined.
Two sources familiar with the matter said that the company is looking to raise US$1 billion to US$1.5 billion in the IPO. The sources did not want to be identified as the talks are private.
One source said that the IPO prospectus will likely be listed on the Malaysian securities regulator's website for review within days.
Lotte Chemical Titan did not immediately respond to requests for comment.