Ad Banner
Advertisement by Open Privilege
Malaysia

OCI Holdings pauses Malaysian polysilicon unit IPO amid market volatility

Image Credits: UnsplashImage Credits: Unsplash
  • OCI Holdings Co. delays Malaysian IPO due to market volatility, pausing plans to list its RM6 billion polysilicon unit.
  • Malaysia’s streamlined IPO process (3-month approval timeline) contrasts with global economic uncertainty impacting listing strategies.
  • Solar industry fluctuations and cautious investor sentiment contribute to the postponement, with no new timeline announced.

[MALAYSIA] OCI Holdings Co., a South Korean chemical manufacturer, has reportedly paused its plans for an initial public offering (IPO) of its Malaysian subsidiary due to recent market volatility. The company had been in discussions with financial advisors to list its Malaysian polysilicon unit on the Kuala Lumpur stock exchange, aiming to raise up to RM1.5 billion (approximately US$320 million) and valuing the unit at up to RM6 billion.

The polysilicon market, a key component in solar panel manufacturing, has seen fluctuating demand in recent months due to shifting global renewable energy policies and oversupply concerns in China. These factors have contributed to investor caution, particularly for companies like OCI Holdings Co., whose valuation is closely tied to the solar industry's growth trajectory. Analysts suggest that the delay may allow the company to reassess its pricing strategy amid these market dynamics.

The decision to delay the IPO comes amid a turbulent market environment, which has led companies to reassess their listing strategies. This move also highlights the challenges faced by companies seeking to enter public markets during periods of economic uncertainty.

In July 2024, sources familiar with the matter indicated that OCI Holdings Co. was considering listing its Malaysian polysilicon unit on the Kuala Lumpur stock exchange to raise as much as RM1.5 billion. The IPO was projected to value OCI Malaysia at up to RM6 billion, potentially making it Malaysia's largest listing since Mr DIY Group's IPO in 2020.

Industry experts note that Southeast Asia's renewable energy sector has attracted significant foreign investment, with Malaysia emerging as a regional hub for solar manufacturing. The country's competitive energy costs and supportive policies have drawn players like OCI Holdings Co., which could benefit from long-term growth in the region. However, short-term market headwinds appear to have tempered immediate IPO ambitions.

The Malaysian government has been proactive in attracting IPOs, with the Securities Commission Malaysia (SC) and Bursa Malaysia Berhad (Bursa Malaysia) jointly committing to expedite the approval process for IPOs on both the Main and ACE Markets. Since March 1, 2024, the approval timeline has been reduced to three months, contingent upon principal advisers and sponsors addressing regulatory queries within five market days.

Despite these efforts to streamline the IPO process, OCI's decision to delay its Malaysian unit's IPO underscores the complexities companies face in navigating market conditions and regulatory landscapes. As global markets continue to experience fluctuations, companies may remain cautious in pursuing public listings, opting to await more favorable conditions.

The broader IPO market in Southeast Asia has seen mixed performance in 2024, with some high-profile listings underperforming post-debut. This trend has led to increased scrutiny from investors, who are prioritizing profitability and sustainable growth over speculative gains. OCI Holdings Co.'s pause reflects this cautious sentiment, as the company likely seeks to avoid a lukewarm reception from the market.

OCI Holdings Co. produces polysilicon used in semiconductors and solar panels, with a plant in Sarawak that produces 35,000 metric tonnes of solar PV polysilicon annually. The company established a regional headquarters in Kuala Lumpur in April 2024 to expand its presence in Southeast Asia.

As of now, OCI has not provided a revised timeline for the IPO of its Malaysian unit, and it remains to be seen when the company will proceed with its public listing plans.


Ad Banner
Advertisement by Open Privilege

Read More

Economy Malaysia
Image Credits: Unsplash
EconomyMay 9, 2025 at 5:30:00 PM

Indonesia shifts fuel imports from Singapore to US amid tariff negotiations

[WORLD] Indonesia is preparing to reroute a portion of its fuel imports from Singapore to the United States as part of broader negotiations...

In Trend Malaysia
Image Credits: Unsplash
In TrendMay 9, 2025 at 4:00:00 PM

Positive prospects in May 2025 for the Snake month

[WORLD] As May 2025 arrives, Chinese astrology places us in the month of the Snake, a time traditionally associated with wisdom, stealth, and...

In Trend Malaysia
Image Credits: Unsplash
In TrendMay 9, 2025 at 3:30:00 PM

All you need to know about ginger

[WORLD] From ancient medicine to modern kitchens, ginger (Zingiber officinale) has been cherished for its distinctive flavor and myriad health benefits. This article...

Economy Malaysia
Image Credits: Unsplash
EconomyMay 9, 2025 at 1:30:00 PM

Pope Leo XIV holds first Mass

[WORLD] Pope Leo XIV, formerly Cardinal Robert Francis Prevost, celebrated his inaugural Mass as the 267th leader of the Roman Catholic Church today,...

Tech Malaysia
Image Credits: Unsplash
TechMay 9, 2025 at 1:00:00 PM

China’s U.S. exports tumble as tariffs escalate

[WORLD] China's exports to the United States experienced a significant downturn in April 2025, plummeting by 21% year-on-year. This sharp decline follows the...

Leadership Malaysia
Image Credits: Unsplash
LeadershipMay 9, 2025 at 1:00:00 PM

Manager-employee disconnect undermines workplace morale

[WORLD] A growing number of managers report a more negative outlook on their teams' performance and overall morale than their employees themselves. This...

Finance Malaysia
Image Credits: Unsplash
FinanceMay 9, 2025 at 12:00:00 PM

Bursa Malaysia rises on banking and AI sector optimism

[MALAYSIA] Bursa Malaysia rebounded at the opening bell on Thursday, recovering from the previous session’s losses, driven by renewed buying interest in select...

Economy Malaysia
Image Credits: Unsplash
EconomyMay 9, 2025 at 12:00:00 PM

Trump optimistic about US-China trade talks

[WORLD] US President Donald Trump stated yesterday that he expects meaningful trade discussions between the US and China to take place this weekend,...

Finance Malaysia
Image Credits: Unsplash
FinanceMay 9, 2025 at 10:30:00 AM

Bank Negara signals policy shift

[MALAYSIA]

Finance Malaysia
Image Credits: Open Privilege
FinanceMay 9, 2025 at 10:00:00 AM

Ringgit rises on trade optimism amid US dollar strength

[MALAYSIA] The ringgit opened stronger against the US dollar today, buoyed by improved market sentiment stemming from recent developments in global trade tariffs...

Politics Malaysia
Image Credits: Unsplash
PoliticsMay 9, 2025 at 10:00:00 AM

The unraveling of the Western world order

[UNITED STATES] The West stands at a pivotal moment in history. The trajectories of civilizations—rising, falling, and evolving—are often shaped by the choices...

Politics Malaysia
Image Credits: Unsplash
PoliticsMay 9, 2025 at 10:00:00 AM

Hong Kong must become aware of the perils of US port and maritime concerns

[WORLD] As U.S. President Donald Trump escalates tariffs on Chinese imports, concerns of a deepening trade war cast a shadow over the global...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege