KUALA LUMPUR (July 4): Lotte Chemical Titan Holding Bhd has priced the institutional and retail shares for its initial public offering (IPO) at RM6.50 each to raise RM3.77 billion.
Bursa Malaysia Main Market-bound Lotte Chemical Titan's IPO involves 580 million new shares in the company, which will have an expanded issued base of 2.31 billion shares upon listing. Lotte Chemical Titan said the final retail share price was lower than the RM8 announced previously.
"Applicants under the retail offering should note that the retail price of RM8.00 per share was paid in full, upon application under the retail offering. As the final retail price of RM6.50 per share is less than the retail price, a refund of the difference, being RM1.50 per share, shall be made to successful applicants of the retail offering, without any interest thereon," Lotte Chemical Titan said.
Lotte Chemical Titan priced its institutional and retail shares today, after revising its IPO yesterday.
Yesterday, Lotte said it had reduced the number of shares under its IPO to 580 million shares, from 740.48 million shares previously.
The IPO share reduction was due to the cut in the institutional offering to 524.22 million shares, from 684.7 million units previously, "after taking into account the overall demand through price discovery", according to the company.
Today, Lotte Chemical Titan said out of the RM3.77 billion IPO proceeds, RM2.81 billion would finance the development and construction of its integrated petrochemical facility.
"The company confirms that the change in proceeds is not expected to materially affect the company’s ability to fund the development and construction of the integrated petrochemical facility," Lotte Chemical Titan said.
Lotte Chemical Titan said the company was expected to be listed next Tuesday (July 11). Based on its IPO share price of RM6.50 and expanded issued base of 2.31 billion shares, the company has a market value of some RM15 billion.