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Tuesday, 11 July 2017

LCT (Lotte Chemical Titan Holdings Bhd) banks on SEA for absorb the supply of polyofelin products.

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Malaysia: Lotte Chemical Titan Holding Bhd (LCT), which returned to the Main Market of Bursa Malaysia today, is betting on South East Asia (SEA) as a "strong demand growth area" for its products for the next 3 years.

Speaking to the press after its listing ceremony here today, its vice president (corporate planning) Philip Kong said the SEA market can absorb supply coming in from its expansion plans in Malaysia and Indonesia, moving forward.

"There is a strong growth demand here in Malaysia and Indonesia. We believe the market can absorb [the supply] of polyofelin products, and independent market researchers share a similar view," said Kong.

He was responding to pundits' views that the market for polyofelin — one of LCT's core products — is in oversupply, subduing investor interest to its IPO, one of the biggest in Bursa Malaysia since 2012, with short of RM4 billion raised.

With the proceeds being lower than the initially-planned RM5.9 billion, LCT has cut down allocation to fund its RM15 billion Indonesian integrated petrochemical facility from RM4.9 billion to RM2.8 billion.

Kong is however confident that the group has enough internal funding to make up for the lesser amount.

"As at first quarter, we had cash of RM425 million," he said, emphasizing on the group's cash flow.

LCT's counter opened flat at RM6.50 with 3.6 million shares traded, before hitting a high of RM6.53 and a low of RM6.47 in the first 5 minutes of trading. As at 10.11am, its shares were down 7 sen at RM6.43, with 23.64 million shares traded.

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