INDORAMA VENTURES APPOINTS LEAD UNDERWRITER FOR ITS IPO

Indorama Ventures Public Company Limited today announced it has signed an agreement to appoint Bualuang Securities Public Company Limited as its lead underwriter and seven co-underwriters for its initial public offering (IPO). The international tranche was underwritten by BofA Merrill Lynch and Morgan Stanley. This initial public offering is believed to be the first coming out of Thailand in 2010 and ranks amongst the largest offering in many years to list on the Thai equity market.


Indorama Ventures will offer approximately 1,000 million shares in the first initial public offering, at 10.20 Baht per share. Trading will commence in the first week of February. This includes the share swap of Indorama Polymers' minorities. The company expects to use the IPO proceeds for future expansion, working capital and short term debt repayment.

Indorama Group Chief Executive Officer, Mr. Aloke Lohia, explained, "Looking at our track record with Indorama Polymers, or IRP, you will know that since listing it on the SET in 2005 we have grown it several times over. As we have also grown the parent company, we realized that it was now bigger than its listed subsidiary and would offer IRP shareholders a better investment. That is why we proposed to delist IRP and list Indorama Ventures, while offering to swap IRP minorities into the new vehicle.”

"We are pleased that the interest from both Thai and foreign institutions has been strong and are pleased that the bookbuild was over-subscribed with some of the world's largest long-term funds expressing interest. I believe this should create healthy demand in the after market too, especially due to the fact that the IPO price reflects an attractive 2010 PE ratio of 6.8 times based on analysts’ consensus." added Mr. Lohia. "Our decision to list in Thailand is the correct one as the country has excellent infrastructure and access to raw materials. We are here to stay."

Thanks to IVL’s vertical integration strategy and strong management team, the Company has seen constant expansion and growth in the past four years. Its Sales increased from Bt18.8 billion in 2006 to Bt32.3 billion in 2007 and Bt53.3 billion in 2008. For the first nine months ending 30 September 2009, IVL reported Sales of Bt59.1 billion.

Indorama Ventures is Thailand’s largest integrated producer of PTA, PET resin, polyester fibers and yarns and also the second largest PET producer in the world. Its businesses focus on four products - PTA, PET, Polyester fiber and yarn, and wool. At present, IVL operates two PET resin manufacturing plants in Thailand, three in Europe and two in North America with combined installed capacity of 1.49 million tons per year; two PTA production plants in Thailand and one in Europe with total installed capacity of 1.59 million tons per year; two polyester fibers and yarn production plants in Thailand with a combined installed capacity of 244,800 tons per year; and one worsted wool yarn plant in Thailand with an installed capacity of 5,900 tons per year.
Indorama Ventures will list under the ticker IVL.
Editor’s note:

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America. The materials do not constitute an offer of securities for sale in the United States, nor may the securities be offered or sold in the United States absent registration or an exemption from registration as provided in the U.S. Securities Act of 1933, as amended, and the rules and regulations thereunder. There is no intention to register any portion of the offering in the United States of America or to conduct a public offering of securities in the United States of America.

The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration exemption from registration or qualification under the securities laws of any such jurisdiction.