KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) bought 17.10 million shares of Lotte Chemical Titan Holding Bhd
when it made its debut on the Main Market of Bursa Malaysia Securities on Tuesday.
Maybank IB, which is the stabilising manager for the initial public offering (IPO), said it bought the shares at RM6.4718 per share, totalling RM110.67mil.
The shares opened flat at RM6.50 and ended the day down 12 sen to RM6.38.
It was the second most active stock with 45.47 million shares done at prices ranging from RM6.33 to RM6.53.
Lotte Chemical, a producer of olefin and polyolefin and a unit of South Korean multinational ethylene producer Lotte Chemical Corp, is the biggest public offering in the country since 2012.
The purchase by Maybank IB accounted for more than one-third of the shares traded.
Last Friday, Maybank said it may buy up to 27.76 million shares to stabilise the share price. Based on Monday's purchase, Maybank IB can now only buy another 10.66 million units.
The stabilising action shall be the earlier of the 30 days when the shares start trading or the maximum of 27.76 million shares, which is about 4.8% of the shares offered under the IPO.
Lotte Chemical fixed its institutional price at RM6.50 per IPO share (previously guided at between RM7.60 and RM8 per IPO share) after completing its bookbuilding process.
At this price, it raised about RM4bil from the IPO, RM2bil less than the earlier envisaged total of RM6bil. It will have a market capitalisation of RM15bil.
Lotte Chemical cut the number of share issuance by almost a quarter from the initially planned 740.5 million.
Under the IPO, Lotte Chemical said the 524.21 million shares offered to institutional funds were fully subscribed.
The IPO also included a retail offering of 49.36 million shares for the public and 6.417 million for directors, eligible employees and staff of the subsidiaries, which was also under-subscribed.
As part of its move to ensure the stock price is stabilised, Lotte Chemical said that it would be making a share buyback offer in respect of the IPO shares subscribed by retail investors and non-cornerstone bumiputra investors.
Limited time offer:
Just RM5 per month.
