OCI is said to put brakes on Malaysia IPO plan on market turmoil.

OCI Holdings Pauses Malaysian Polysilicon Business Listing Amid Market Volatility

The polysilicon industry has struggled with a huge surplus, with far too much capacity built relative to demand, resulting in prices of the solar grade material tumbling more than 80 per cent over the past two years.

Listing Plans Put on Hold

[KUALA LUMPUR / HONG KONG] OCI Holdings’ financial advisers have paused work on the potential listing of its Malaysian polysilicon business amid volatility in global stock markets, sources familiar with the matter said.

While work on the initial public offering (IPO) has slowed down, OCI has not officially cancelled the IPO process, and it may revisit the plan later, the sources said, asking not to be identified because the deliberations are private.

OCI Stands Firm

A spokesperson for Seoul-based OCI said the company is still weighing options for the Malaysian affiliate, including an IPO, but no final decisions have been made.

Industry Challenges

The polysilicon industry has struggled with a huge surplus, with far too much capacity built relative to demand, resulting in prices of the solar grade material tumbling more than 80 per cent over the past two years. Meanwhile, the threat of US tariffs against Malaysia – and the wider South-east Asian region – risks exports of solar equipment to the world’s largest economy.

Business Details

OCI had been considering a listing that could raise as much as RM1.5 billion (S$449 million) and value the Malaysian polysilicon business at up to RM6 billion, Bloomberg News reported previously. An IPO of that size would have been one of the biggest share sales in the South-east Asian nation in recent years.

OCI Malaysia makes polysilicon used in semiconductors and solar panels. It has a plant in Sarawak state in Borneo that produces 35,000 tonnes of solar PV polysilicon a year, according to its website.

OCI Group

Seoul-listed OCI, founded in 1959, produces a range of chemicals, petrochemicals and carbon materials. It set up a regional headquarters in Kuala Lumpur in April to help its expansion in South-east Asia.

Conclusion

OCI Holdings’ decision to pause its Malaysian polysilicon business listing amid market volatility highlights the challenges faced by the polysilicon industry, which has struggled with a surplus of capacity and declining prices. The company’s future plans for the Malaysian affiliate remain unclear, but it may revisit the IPO process later.

FAQs

Q: Why did OCI Holdings pause its Malaysian polysilicon business listing?
A: OCI Holdings paused its Malaysian polysilicon business listing amid volatility in global stock markets.

Q: What is the current state of the polysilicon industry?
A: The polysilicon industry is struggling with a huge surplus, with far too much capacity built relative to demand, resulting in prices of the solar grade material tumbling more than 80 per cent over the past two years.

Q: What is the potential impact of US tariffs on Malaysia?
A: The threat of US tariffs against Malaysia – and the wider South-east Asian region – risks exports of solar equipment to the world’s largest economy.

Q: What is OCI Malaysia’s production capacity?
A: OCI Malaysia produces 35,000 tonnes of solar PV polysilicon a year at its plant in Sarawak state in Borneo.