IPO Malaysia

IPO - Lotte Chemical Titan Holding Berhad (LCTITAN)

kltrader
Publish date: Sat, 17 Jun 2017, 06:12 PM
kltrader
0 20,605
My collection of new IPOs in Malaysia and the background of companies going for IPO.

Listing Detail:
Listing Sought: Main Market
Issue Price: RM 8.00

Dates:
Offer Period Open: 16 Jun 2017
Offer Period Close: 28 Jun 2017
Tentative listing date: 11 Jul 2017

Number of shares:
Public Issue: 740,483,000
 

Stock Code: LCTITAN

Official Announcement

INITIAL PUBLIC OFFERING ("IPO") OF 740,483,000 ORDINARY SHARES IN LOTTE CHEMICAL TITAN HOLDING BERHAD ("LCT") ("SHARES") IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE 2,468,274,500 SHARES ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING A PUBLIC ISSUE OF 740,483,000 NEW SHARES ("IPO SHARES") IN THE FOLLOWING MANNER:

(I) INSTITUTIONAL OFFERING OF 684,700,000 IPO SHARES TO MALAYSIAN AND FOREIGN INSTITUTIONAL AND SELECTED INVESTORS, INCLUDING BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AT THE INSTITUTIONAL PRICE TO BE DETERMINED BY WAY OF BOOKBUILDING ("INSTITUTIONAL PRICE"); AND

(II) RETAIL OFFERING OF 55,783,000 IPO SHARES TO THE DIRECTORS OF LCT, ELIGIBLE EMPLOYEES OF LCT AND ITS SUBSIDIARIES ("LCT GROUP"), PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF THE LCT GROUP AND THE MALAYSIAN PUBLIC AT THE RETAIL PRICE OF RM8.00 PER IPO SHARE ("RETAIL PRICE"),

PAYABLE IN FULL UPON APPLICATION AND SUBJECT TO REFUND OF THE DIFFERENCE BETWEEN THE RETAIL PRICE AND THE FINAL RETAIL PRICE (AS DEFINED IN THE PROSPECTUS) IN THE EVENT THAT THE FINAL RETAIL PRICE IS LESS THAN THE RETAIL PRICE, SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS AND THE OVER-ALLOTMENT OPTION (AS DEFINED IN THIS PROSPECTUS).

 

Company Overview

Lotte Chemical Titan Holding Berhad produces and exports a portfolio of olefins and polyolefins. It offers high-density polyethylene that is used to manufacture grocery, merchandise and trash bags, food containers for items, such as frozen desserts and margarine, bottle caps and closures, liners for cereal and cracker boxes, plastic drink cups, dairy crates, bread trays, pails, safety equipment, such as hard hats, house wrap for insulation, bottles for household and industrial chemicals, milk bottles, juice bottles, and large tanks for storing liquids, such as agricultural and lawn care chemicals.

The company also provides low-density polyethylene that is used to manufacture food packaging films, plastic bottles for packaging food and personal care items, dry cleaning bags, ice bags, pallet shrink wraps, heavy-duty bags for mulch and potting soil, boil-in-bag bags, coatings on flexible packaging products, and coatings on paper board such as milk cartons.

The company also provides linear low-density polyethylene that is used to manufacture garbage and lawn-leaf bags, industrial can liners, housewares, lids for coffee cans and margarine tubs, dishpans, home plastic storage containers, kitchen trash containers, large toys, such as outdoor gym sets, drip irrigation tubing, protective coatings for telephone wires and films, shrink wraps for multi-packaging canned food, bag-in-box bags, produce bags, and pallet stretch wraps.

In addition, it offers polypropylene; and olefins and derivatives that include ethylene, propylene, butadiene, tert-butyl alcohol, benzene, and toluene. The company was founded in 1989 and is based in Kuala Lumpur, Malaysia with location in Pasir Gudang and Gelugor, Malaysia; Cilegon and Kuningan, Indonesia. As of November 9, 2010, Lotte Chemical Titan Holding Berhad operates as a subsidiary of Lotte Chemical Corporation.

Address & Contact:

6th Floor, Bangunan Malaysian Re No. 17 Lorong Dungun,
Damansara Heights 50490 Kuala Lumpur, Malaysia.

Phone: +603 2093 4222
Fax: +603 2093 5688
Website: http://www.lottechem.my

 

News: Lotte Chemical Titan to Raise RM5.92b From IPO

The initial public offering (IPO) of integrated olefin and polyolefin producer Lotte Chemical Titan Holding Bhd (LCT) is expected to raise gross proceeds of approximately RM5.9bil and achieve a post-listing market capitalisation of RM19.7bil, at the retail price of RM8 per share.

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

The IPO will see the sale of approximately 740.5 million shares, or 30% of the enlarged issued share capital of LCT.

This comprises an institutional offering of 684.7 million IPO shares and a retail offering of 55.8 million IPO shares, representing 27.7% and 2.3% of the enlarged share capital of LCT, respectively.

Proceeds from the IPO will be utilised over the next 12 to 36 months to finance the company's expansion in Malaysia and Indonesia, with 83.2% of gross proceeds to partially fund the development of an RM15.5bil integrated petrochemical facility in Indonesia to increase its ethylene production by up to 1,000 kilo tonnes per annum (KTA).

Meanwhile, 10.5% of the proceeds will go to the construction of a new polypropylene plant in Johor to increase production by 200KTA, and 3.7% of the proceeds will be used to upgrade the group's existing naphtha cracker to increase the production of ethylene, propylene as well as benzene, toluene, xylene (BTX).

LCT also has a joint venture with Lotte Chemical Corp for the US Shale Gas Project to construct and operate an ethane cracker plant and a monoethylene glycol plant in the US.

LCT products are sold to over 60 countries with Malaysia and Indonesia contributing 39% and 28% of total sales, respectively.

Speaking at the prospectus launch on Friday, LCT president and CEO Lee Dong Woo said LCT has benefitted from the relationship with its parent company Lotte Chemical Corp's operational expertise and industrial know-how.

"Our recent investments in the Tanjung Langsat and Pasir Gudang plants have effectively made LCT one of the Lotte Chemical Corp's largest manufacturing concerns outside of South Korea.

"On the back of steady growing demand in the Southeast Asian region that supports the increase in capacity, LCT is pursuing opportunistic investments to expand and diversify our product portfolio and optimise our existing operations," said Lee.

In addition, the prospectus states that LCT aims to pay dividends in the amount equal to approximately 50% of its consolidated net profits of every fiscal year.

In Malaysia, LCT's operating profits jumped from a mere RM58mil in 2014 to RM1.7bil on the back of a revenue of RM8.1b for the financial year ended December 31, 2016.

En route to listing on Bursa Securities on July 11, 2017, LCT has secured five cornerstone investors, namely Permodalan Nasional Bhd, Maybank Asset Management Sdn Bhd, Maybank Islamic Asset Management Sdn Bhd, Eastspring Investments Bhd and Great Eastern Life Assurance (Malaysia) Bhd, who have agreed to severally acquire an aggregate of 136 million IPO shares, representing 18.4% of the base offering of the IPO.

Maybank Investment Bank Bhd is the principal adviser, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter for the listing exercise.
-- The Star

 

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Be the first to like this. Showing 50 of 106 comments

linges

8.00 to 6.50...this is ridiculous..

If investor happily subscribes at 8.00...they may got 1.50 atas angin..

Wondering cornerstones agreed for 8.00 at first place..

2017-06-30 20:53

limch

Better have statistics how many gain from high price IPO(above RM 1?) past 5 years. Is it more gainers or losers? Many fearful insiders con job. Say good during IPO but can turn after 1-2 years.

2017-06-30 20:58

8wpwtmt8

There is no official announcement yet from Lotte Chemical Titan Holding Bhd in Bursa Malaysia Website. If true, MIH should refund our application money immediately (by Tuesday 4 July 2017) for us to reapply at RM6.50 before a new closing date.

2017-06-30 21:02

MrPauper

i don't think there will be immediate refund

2017-06-30 21:29

8wpwtmt8

Never mind. I will call MIH Monday morning to find out the latest development and the procedure they will carry out shall there be a relaunch at RM6.50.

2017-06-30 22:31

8wpwtmt8

I think it is better to change the issue price from RM8 to RM6.50. The image of LCTITAN has already been tarnished by this issue.

2017-07-01 20:43

smartly

8 is too pricey !!!
no one want to apply

2017-07-01 21:52

smartly

6.50 more reasonable. this will attract more applicants

2017-07-01 21:53

smartly

6.50 will change appetite from under subscribed to over subscribe

2017-07-01 21:54

smartly

6.50 is around PE of 12sen. look reasonable

2017-07-01 22:05

xiaoxiami

Any update ? Is it all speculation ?

2017-07-03 12:19

8wpwtmt8

Malaysian Issuing House Sdn Bhd ("MIH") wishes to announce that following the completion of the bookbuilding process under the Institutional Offering by LCT, the institutional price has been fixed at RM6.50 per IPO Share. Accordingly, the final retail price for the IPO Shares under the Retail Offering has also been fixed at RM6.50 per IPO Share ("Final Retail Price"). As the Final Retail Price of RM6.50 per IPO Share is less than the Retail Price of RM8.00 per IPO Share which was paid in full upon application under the Retail Offering, a refund of the difference being RM1.50 per IPO Share shall be made to successful retail applicants, without any interest thereon.

A total of 7,386 applications were received for 32,023,700 IPO Shares under the Retail Offering for Malaysian Public. In addition, the unsubscribed shares under the Retail Offering of 21,267,800 IPO Shares, which were underwritten by the Joint Underwritters, were clawed back and reallocated to the Institutional Offering as set out in the Prospectus of LCT.

All Notices of Allotment for the IPO Shares will be mailed to successful applicants on or before 10 July 2017.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5476669

Dated 4 July 2017 12:30 pm

2017-07-04 14:26

omightycap

Investors that followed us for the subscription. This is a note of advice from us.

https://omightycap.wordpress.com/2017/07/06/follow-up-on-lotte-chemical-titan-ipo/

2017-07-06 13:44

peng01

If day 1 drop a lot, and u still wan to invest in this counter,
buy back same qty at lower price.
then send back the form for sell back to lotte at rm6.50
And now ur lotte ipo price is lower than all institutional investor !

but i think if day 1 drop,. all retail will mail the RM6.50 form

2017-07-06 17:24

Superbjet

I applied thru CIMB e-IPO. Today i received a refund from them (RM1.50/share) without signing any form

2017-07-06 17:52

sogeking

Same here. I already get the refund. No form also

2017-07-06 18:35

riaz

R.I.P

2017-07-09 17:27

Apollo Ang

why R.I.P? no reason? or u no money invest jealous?

2017-07-09 17:38

Alex Foo

when open ah? mon or tue?

2017-07-09 17:44

Edonald

monday

2017-07-09 18:09

Apollo Ang

Monday is advancon lah tues is lotte,dunno also chin chai post

2017-07-09 18:12

LearnFromMistake

If all ppl ask refund, 2nd day jump up to rm9, how? Can cancel the refund?

2017-07-09 18:16

smartly

sure above RM7 opening bell...

2017-07-09 18:25

smartly

i think at least RM8 above to be reasonable...

2017-07-09 18:26

Apollo Ang

dreaming ar RM 9? If RM 8.00,i straight away take the ballot form and vote for BN....hahaha

2017-07-09 18:27

xuewenapeng

see this stock at 5.50 soon

2017-07-09 20:25

xuewenapeng

BN no !money Liao better run from stocks market

2017-07-09 20:26

xuewenapeng

or you can vote for PAKATAN RAKYAT IN the GE14

2017-07-09 20:26

chkhooju

Be realistic!

2017-07-09 22:26

Apollo Ang

RM 5.50? can u sell for me at RM6.00? what a sorchai....hahaha

2017-07-09 22:35

ruslimz

Already in CDS........ready to ramboooooo tomorrow.......

2017-07-10 07:42

Apollo Ang

public invest TP for advcon is only 78.5cts now 81.5cts, public invest TP for LOTTE is RM 7.72,hopefully RM7.80

2017-07-10 09:45

smartly

RM8 lai liao.... :)

2017-07-10 09:52

Malaycake

How come mine is not in CDS yet?

2017-07-10 09:59

Apollo Ang

yours not in cds from kenanga?

2017-07-10 10:12

ruslimz

RM1.00 = RM100,000.......

2017-07-10 10:40

Malaycake

public b

2017-07-10 12:27

Malaycake

I did a mistake I think I use a nominee account to apply for Lotte IPO in Maybank2u. I don't think it is ok now. Any advice?

2017-07-10 14:40

Apollo Ang

ask ur remisier the stock have been credited to your a/c? cos my one all in already

2017-07-10 14:49

8wpwtmt8

I have just received the letter of allotment from MIH via City Link and all the shares are credited into my CDS account already. Hope for the best tomorrow.

2017-07-10 15:25

emfresh

korean fund coming in this week, dont sell below 7.00 is a stupid decision. PE 15X

2017-07-10 19:03

emfresh

@xuewenapeng [Lotte] Pepero Coconut Chocolate 32g selling at rm5.40 only after discount.

2017-07-10 19:06

apolloang

just receive my money back from the share buyback

2017-07-28 12:30

TheContrarian

apolloang, don't spend the money yet.

2017-07-29 23:36

Zainul Sidek

Ouchhhhh

2017-07-31 22:53

jOe_bangsar

wau.

2017-08-01 14:34

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