Bankers: Lotte unit likely to get cornerstone investor

A South Korean national flag flies outside a Lotte Shopping Co. department store in Seoul, South Korea, on Monday, March 13, 2017. After almost seven years of planning and 4 trillion won (3.6 billion) in spending,Lotte Group is preparing to unwrap its Lotte World Tower to the public.The building boasts some record-setting amenities: highest glass floor at the top of a building and highest swimming pool. Photographer: SeongJoon Cho/Bloomberg

PETALING JAYA: The Lotte Group’s plan to float its Malaysian petrochemical arm would likely include a cornerstone investor in the form of a large local institution, driven by the yield and growth story of the listing, according to bankers.

The Lotte Group, which is South Korea’s fifth-largest conglomerate, is planning an initial public offering (IPO) of its Malaysian petrochemical unit, Lotte Chemical Titan Holding Sdn Bhd, on Bursa Malaysia, according to the company’s draft prospectus filed on the Securities Commission’s website.