Amid global market uncertainties, South Korean chemical firm OCI Holdings has suspended its planned initial public offering (IPO) for its Malaysian polysilicon business, as reported by China Energy News.
According to a Bloomberg report, OCI Holdings still intends to proceed with its IPO but has temporarily slowed down the process. Sources close to the matter suggest that the global stock market turmoil triggered by U.S. tariffs on imported goods has prompted OCI’s management to delay the IPO. Previously, OCI had aimed to raise $320 million through the listing of its Malaysian polysilicon business.
Currently, the polysilicon market is experiencing oversupply, leading to a significant drop in prices for solar-grade polysilicon over the past two years. In 2024, nearly all Chinese polysilicon producers have reported financial losses and have announced substantial production cuts.
Earlier this month, Bernreuter Research, a polysilicon market analyst, posted on LinkedIn that the recent production cuts are “unlikely” to cause a significant increase in polysilicon prices in the coming months.
“China’s new polysilicon production capacity is scheduled to come online in the second quarter, reducing the likelihood of a substantial price increase in the upcoming weeks and months,” the post read. “While non-Chinese polysilicon is generally more expensive than its Chinese counterparts, the industry’s oversupply continues to depress prices and squeeze manufacturers’ profit margins.”
In January this year, OCI Holdings signed a supply agreement with South Korean company Hanwha Qcells to provide polysilicon from its Malaysian facility to Qcells’ planned U.S. wafer and cell manufacturing plant.
Previously, Qcells had terminated a supply agreement with Norway-based REC Silicon, which involved polysilicon produced at REC Silicon’s Moses Lake facility in Washington State. Hanwha is also a shareholder in REC Silicon. The conclusion of this transaction led to the abandonment of polysilicon production at Moses Lake.
