June 30, 2017 / 9:56 AM / 3 years ago

Malaysia's Lotte Chemical Titan to relaunch IPO at lower price - sources

KUALA LUMPUR, June 30 (Reuters) - Malaysia’s Lotte Chemical Titan Holding Sdn Bhd will relaunch its initial public offering (IPO) on Monday at a lower price than initially targeted due to weak investor appetite, three sources familiar with the deal said.

The IPO will be likely be launched at 6.50 ringgit per share, raising 4.81 billion ringgit ($1.12 billion), the sources said, speaking on condition of anonymity as the process is private.

The offering was earlier expected to price in the 7.60-8 ringgit per share range, raising up to $1.4 billion.

Lotte Chemical Titan did not immediately respond to a request for comment.

The integrated petrochemical producer, which is targeting a July IPO on the Bursa Malaysia stock exchange, is wholly owned by South Korea’s Lotte Chemical Corp.

Earlier this month, Lotte Chemical Titan said Permodalan Nasional Bhd (PNB), Eastspring Investments Bhd, Great Eastern Life Assurance Malaysia Bhd, Maybank Asset Management Sdn Bhd and Maybank Islamic Asset Management Sdn Bhd had signed on as cornerstone investors.

The IPO plan involved the sale of 740.4 million shares, or 30 percent of enlarged capital, with 18.4 percent taken up by the cornerstone investors. ($1 = 4.2930 ringgit) (Reporting by Liz Lee; Editing by Muralikumar Anantharaman)

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