22 March 2005 02:06 [Source: ICIS news]
SINGAPORE (CNI)--Malaysia's Titan Chemicals is expected to send out the prospectus for its much-anticipated initial public offering (IPO) within the next two to three weeks, after receiving the approval from the Securities Commission to list on the main board of Bursa Malaysia recently, industry sources told CNI on Tuesday.
Titan is aiming to raise more than Rm900m ($236.87m/Euro177.09m) via the IPO, according to a local newspaper report which quoted unidentified sources last week. A source close to the company said that the figures were "deflated."
The report said that Titan, Malaysia's largest integrated olefins and polyolefin producer and Southeast Asia's second-largest polyolefin producer, is looking at issuing shares at an indicative price of Rm2.17 each, or six times its earnings. Some industry sources said that the value of Titan's IPO was expected to be the largest in Malaysia this year.
"Titan needs to prepare the prospectus send it to the Securities Commission for approval before sending it out to the potential investors," an industry source said.
The company is currently finalising the details for its road show schedule. It is understood that Titan IPO road shows will be held around the world, including the US, because it is a global issue and not a local one.
Titan is expected to launch the IPO by the end of June, taking into account the IPO application date on 20 December, 2004.
Commerce International Merchant Bankers (CIMB) and Goldman Sachs are the joint global coordinators and joint book-runners for the proposed IPO, and CIMB is the financial adviser.
Additionally, DBS Bank and Maybank Securities have also been appointed as joint book-runners for the IPO.
Titan operates eight plants on two integrated sites in Pasir Gudang and Tanjung Langsat in Johor, which are connected by a 12-kilometre network of pipelines.
It has annual olefins production capacity of over 964,000 tonne, and polymer capacity of 900,000 tonne. In addition, it has an aromatics plant that produces 200,000 tonne of benzene and toluene.
Founded in 1988 by TT Chao, Titan has as its main shareholders PNB Equity Resource Corp (PERC), a wholly owned subsidiary of Permodalan Nasional Berhad, one of Malaysia’s largest investment holding company and unit trusts manager.
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