OCI Holdings Co. has temporarily halted its efforts to pursue an initial public offering (IPO) for its Malaysian polysilicon business due to fluctuations in global stock markets, according to sources familiar with the situation.
While progress on the IPO has stalled, OCI has not officially abandoned the process and may consider reviving the plan in the future, the sources, who requested anonymity, indicated.
A spokesperson for the Seoul-based company stated that OCI is still exploring options for its Malaysian subsidiary, including the possibility of an IPO, but no definitive decisions have been reached.
The polysilicon sector is currently facing challenges due to an oversupply, with production capacity far exceeding demand, leading to a more than 80% drop in the prices of solar-grade polysilicon over the past two years. Additionally, the potential implementation of U.S. tariffs against Malaysia and the broader Southeast Asian region poses a risk to exports of solar equipment to the United States.
Previously, OCI was contemplating an IPO that could raise up to RM1.5 billion and potentially value its Malaysian polysilicon business at around RM6 billion, as reported by Bloomberg News. Such an IPO would have represented one of the largest share offerings in Malaysia in recent years.
OCI Malaysia produces polysilicon utilized in semiconductors and solar panels, operating a plant in Sarawak, Borneo, with an annual output capacity of 35,000 metric tons of solar PV polysilicon, according to its website.
Founded in 1959 and listed in Seoul, OCI manufactures a variety of chemicals, petrochemicals, and carbon materials. In April, the company established a regional headquarters in Kuala Lumpur to facilitate its growth in Southeast Asia.
