“The South Korea-based OCI is talking to financial advisers on a potential initial public offering (IPO) that could value OCI Malaysia at up to RM6 billion,” said the sources, who asked not to be identified as the process is private.

The sources noted that an IPO to raise RM1 billion to RM1.5 billion may take place in the second half of next year.

Data compiled by Bloomberg shows that this could become Malaysia’s biggest listing since home improvement retailer, MR DIY Group (M) Bhd raised RM1.5 billion in its 2020 IPO.

“Deliberations are ongoing and there’s no guarantee that OCI will proceed with a listing of the unit,” said the sources.

In response to a Bloomberg News query, a representative for the company said OCI is considering various options for the Malaysian unit, including an IPO, but no final decisions have been made.

“OCI Malaysia makes polysilicon, which is used in semiconductors and solar panels, with a plant in Sarawak that produces 35,000 metric tons of solar photovoltaic (PV) polysilicon a year,” its website reported.

Seoul-listed parent OCI has fallen 28% this year for a market value of about 1.5 trillion won (US$1.1 billion).

Founded in 1959, the company produces a range of chemicals, petrochemicals and carbon materials.

In April 2024, it established a regional headquarters in Kuala Lumpur for its business expansion in Southeast Asia.