PE-Backed Momentive Files for $862.5M IPO

Momentive Performance Materials Holdings, a chemical manufacturer owned by Apollo Management, has filed to raise up to $862.5 million in an initial public offering, Reuters reported. Apollo owns about 89.5 percent of Momentive. GE Capital Equity Investments Inc. owns about 8.9 percent of the company. Momentive makes thermosets, silicones and silicone derivatives and has over 104 manufacturing facilities.

(Reuters) – Apollo Management-owned specialty chemicals maker Momentive Performance Materials Holdings LLC filed with U.S. securities regulators to raise up to $862.5 million in an initial public offering of common stock.

Momentive, one of the largest chemical companies in the world, was formed when private equity firm Apollo decided to merge its two specialty chemicals companies — Hexion Specialty Chemicals Inc and Momentive in 2010.

Apollo owns about 89.5 percent of Momentive. GE Capital Equity Investments Inc owns about 8.9 percent of the company.

The company makes thermosets, silicones and silicone derivatives and has over 104 manufacturing facilities.

In 2010, Momentive had pro-forma net sales of $7.4 billion and adjusted EBITDA of $1.2 billion.

Momentive did not reveal how many shares it planned to sell or their expected price in a filing with the U.S. Securities and Exchange Commission.

In the filing, Momentive did not specify the exchange on which its shares would be listed.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO can be very different. (Reporting by A. Ananthalakshmi in Bangalore; Editing by Sriraj Kalluvila)