Lotte Chemical Titan Holding Bhd shares fell to their lowest level since April 2020 on Thursday, with investors reacting to widening quarterly losses and an uncertain future. The company’s stock dropped by as much as 4.5 sen, or nearly 5%, to 91.5 sen , giving it a market capitalisation of RM2.13 billion . The petrochemical company faces challenges as product spreads remain under pressure due to a global supply glut , primarily from new capacity expansions in China . Analysts at TA Securities noted that Lotte Chemical is likely to stay in the red “over the next few quarters” and maintained a 'sell' rating on the stock. The company has reported quarterly losses since 2QFY2022 and is expected to continue to report losses through this year. Analysts estimate that Lotte Chemical may not return to profitability for another two years , according to Bloomberg consensus data. A significant challenge for Lotte Chemical is the squeeze in spreads between naphtha costs and polymer sel
Shares of Waaree Energies Ltd., India’s largest solar panel maker, surged nearly 75% on their first day of trading, following a highly successful $514 million initial public offering (IPO). This strong debut has revitalized optimism in India's IPO market, especially after Hyundai Motor India Ltd.'s disappointing listing last week.
The stock climbed to 2,624.40 rupees from its issue price of 1,503 rupees, with the IPO drawing significant interest, being oversubscribed more than 70 times. Major investors like Goldman Sachs, BlackRock, and Morgan Stanley participated in the offering.
The successful debut reflects growing interest in India’s renewable energy sector, which has seen significant investment due to the government's push to expand renewable energy production. Waaree’s strong presence in the solar sector value chain positions it well for future growth, according to analysts like Nitin Mangal from Trudence Capital Advisors.
Waaree's performance contrasts sharply with Hyundai Motor India's recent listing, which suffered after its record-breaking $3.3 billion IPO. Waaree’s promising financials, including a profit of 4 billion rupees ($47.7 million) for the three months ending in June, along with its $9 billion market capitalization on Monday, have further bolstered investor confidence.
This IPO is part of a broader surge in Indian IPO activity, which has already raised $13.1 billion this year, surpassing the annual volumes of the past two years. Waaree's performance sets a positive tone for upcoming IPOs, including those of LG Electronics India and NTPC Ltd.'s renewable energy arm.
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