Momentive Files For $862.5 Million IPO

Performance materials and specialty chemicals company Momentive has filed for an $862.5 million initial public offering of stock. The firm and its owner, private equity firm Apollo Management, hasn't yet set a date for the offering nor determined pricing and the number of shares to be sold.

Momentive says it will use the proceeds for general corporate purposes. However, it discloses that its main corporate strategies will include developing new products, expanding overseas, and shifting to higher margin specialty products.

Apollo created the company in September by merging thermoset resins maker Hexion Specialty Chemicals and silicones maker Momentive Performance Materials. At the time, industry stock watchers anticipated an IPO (C&EN, Sept. 20, 2010, page 4).

Momentive's products are sold to other manufacturers in the construction materials, consumer and durable goods, energy, and automotive industries. Approximately 60% of Momentive's business comes from outside the U.S., according to the Securities and Exchange Commission filing.

Apollo says 2010 pro forma revenues of the newly combined companies were $7.4 billion. According to C&EN's analysis, that would have made Momentive the second-largest performance chemicals firm in the U.S., after Huntsman Corp., and the 10th largest U.S. chemical firm overall (C&EN, May 10, 2010, page 23). The pro forma results show Momentive booked net losses in the years 2008 to 2010.