Lotte Chemical Titan surges 31% on parent company’s disposal plan

Lotte Chemical Titan Holding Bhd, a Malaysian subsidiary of South Korean petrochemical giant Lotte Chemical Corp, experienced a significant surge in its stock price following reports that its parent company might be considering selling the business. The shares of LCTitan rose nearly 31% during early trading, reaching a high of 40.5 sen from a closing price of 31 sen the previous day.

By the end of trading, the stock had only recovered 11.3%, or 3.5 sen, to 34.5 sen, valuing the company at RM798 million. This surge represents the 10th most traded stock on Bursa Malaysia, with a trading volume of 35.6 million shares.

The sudden increase in the stock price came after a report by the Korea Economic Daily, which suggested that Lotte Chemical Corp was reviving its plans to dispose of LCTitan and a stake in its Indonesian unit. The news sparked concerns among investors, leading to a significant increase in the value of LCTitan's shares. In response to the media reports, LCTitan issued a clarification in an exchange filing, stating that they were making due inquiries into the matter and had not yet made any decisions regarding the potential sale.

The company assured that they would make the necessary announcement should there be any further updates.

LCTitan, established in 1989, is one of Southeast Asia's largest integrated producers of olefins and polyolefins, operating 12 plants in Johor, Malaysia. The company was acquired by Lotte Chemical Corp in 2010 from Malaysia's The Chao Group and Permodalan Nasional Bhd for US$1.25 billion (RM5.07 billion). Despite its significant size and strategic importance, LCTitan has struggled in recent years, posting net losses for four consecutive years, with a loss of RM296.9 million for the first six months of FY2026.

The company's stock has been severely impacted, collapsing by nearly 95% since its relisting on Bursa Malaysia nine years ago.