Indorama may spin off surfactants

The Thai chemical giant Indorama Ventures is considering an initial public offering (IPO) of the surfactant business it has built in recent years. The proposed move is part of an overhaul the company is launching as its core polyester business faces challenges, including slow demand in China and high costs in Europe. As a first step, Indorama is carving out the surfactant business and naming it Indovinya. The business had sales of nearly $3.6 billion in 2023 and pretax earnings of $440 million. Indorama created the business primarily through two big acquisitions: it purchased Huntsman’s oxide and derivatives business for $2.0 billion in 2020 and the Brazilian surfactant maker Oxiteno for $1.3 billion in 2022. An Indorama spokesperson says the business has critical mass and that an IPO would “unlock value.” The company is also considering an IPO for a packaging business. The two IPOs together could help the company pay down $1 billion in debt.