Korea’s OCI said to weigh RM1.5bil IPO for Malaysia unit

OCI Holdings Co. is considering listing its Malaysian polysilicon unit on the Kuala Lumpur stock exchange to raise as much as RM1.5bil (US$320mil ), according to people familiar with the matter.

South Korea-based OCI is talking to financial advisers on a potential initial public offering that could value OCI Malaysia at up to RM6bil, the people said, asking not to be identified as the process is private.

An IPO to raise RM1bil to RM1.5bil may take place in the second half of next year, they said. That could make it Malaysia’s biggest listing since home improvement retailer MR DIY Group (M) Bhd. raised RM1.5bil in its 2020 IPO, data compiled by Bloomberg show.

Deliberations are ongoing and there’s no guarantee that OCI will proceed with a listing of the unit, the people said. OCI is considering various options for the Malaysian unit, including an IPO, but no final decisions have been made, a representative for the company said in response to a Bloomberg News query.

About $723 million has been raised in IPOs in Malaysia this year, led by Johor Plantations Group Bhd.’s $156 million offering, according to data compiled by Bloomberg. Some $506 million was raised in the same period last year.

OCI Malaysia makes polysilicon, which is used in semiconductors and solar panels, with a plant in east Malaysia’s Sarawak that produces 35,000 metric tons of solar PV polysilicon a year, its website shows.

Seoul-listed parent OCI has fallen 28% this year for a market value of about 1.5 trillion won ($1.1 billion). Founded in 1959, the company produces a range of chemicals, petrochemicals and carbon materials. It established a regional headquarters in Kuala Lumpur in April to help its expansion in Southeast Asia. - Bloomberg