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An investor monitors share market prices at a brokerage firm in Kuala Lumpur, Malaysia, August 24, 2015. — Reuters picAn investor monitors share market prices at a brokerage firm in Kuala Lumpur, Malaysia, August 24, 2015. — Reuters picKUALA LUMPUR, June 16 — Lotte Chemical Titan Holdings Bhd (LCT), the largest integrated producer of olefins and polyolefins in Malaysia, launched its prospectus for its proposed listing on Bursa Malaysia today.

This will mark its return to the Malaysian equity market after it was delisted in 2011 following a take-over of the company by the Lotte Group.

Formerly known as Titan Chemicals Corp, Lotte Group acquired the Malaysian company in a 2010 in all-cash deal valued at about RM3 billion.

It was listed on the Main Board of Bursa Malaysia as TITAN 5103 in 2005.

At the retail price of RM8.00 per share, LCT is expected to raise RM5.9 billion through the initial public offering  (lPO), and it hopes to achieve a post-listing market capitalisation of approximately RM19.7 billion. 

The IPO will see the sale of approximately 740.5 million shares, or approximately 30 per cent of the enlarged issued share capital of LCT, comprising an institutional offering of 684.7 m on IPO shares, and a retail offering of approximately 55.8 million IPO shares, representing approximately 27.7 per cent and 2.3 per cent of the enlarged issued share capital of LCT, respectively. 

The IPO includes an over-allotment option of approximately 55.5 million shares, or approximately 2.3 per cent of the enlarged issued share capital of LCT, for purposes of price stabilisation.

The LCT listing will be the largest in Malaysia since August 2012 and the largest in Southeast Asia since May 2013. 

The final retail price will be equal to the lower of the retail price of RM8.00 per IPO share or the institutional price to be determined by way of book building. 

LCT Chairman, Tan Seri Abdul Rahman Mamat, said: “Through this lPOs and LCT’s upcoming listing, LCT will introduce to both the local equity market and local and foreign institutional investors.

“Lotte is a fast-growing company in the petrochemicals sector that develops innovative technologies and performance materials, a strong culture and a stronger management team backed by its solid lineage.”

He said the funds generated from the IPO exercise will enable LCT to undertake its expansion plans in the thriving South-east Asian environment, and create real, lasting value for LCT’s shareholders.

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