MELAMINE CHEMICALS FILES FOR INITIAL OFFERING
<Melamine Chemicals Inc>
said it has filed for an initial public offering of 2,800,000
common shares through underwriters led by PaineWebber Group Inc
<PWJ>.
    The company said it will sell 1,400,000 shares and the rest
will be sold by Ashland Oil Inc <ASH> and First Mississippi
Corp <FRM>, Melamine's two shareholders.  Proceeds will be used
to build a new melamine plant, buy the existing plant from
Ashland and First Mississippi and part of a special dividend to
Ashland and First Mississippi. 
    In Ashland, Ky., Ashland Oil said it is selling 700,000
shares and First Mississippi 700,000 of Melamine.
 Reuter
