If completed, the offering would surpass any Malaysian IPO since plantation group FGV Holdings raised more than RM10 billion in 2012
[KUALA LUMPUR] Malaysia’s largest port operator MMC Port Holdings, controlled by tycoon Syed Mokhtar Al-Bukhary, has secured approval from the Securities Commission Malaysia for a main market listing that could be the country’s biggest initial public offering (IPO) in more than 10 years.
According to the statement on Tuesday (Sep 23), the IPO will comprise an offer for sale of up to 4.3 billion shares, representing about 30 per cent of MMC Ports’ issued share capital of 14.2 billion shares.
Out of this, 284.8 million shares have been earmarked for the Malaysian public, while 1.3 million shares will be offered to the company’s directors and senior management.
The remaining balance of up to four billion shares will be allocated to Malaysian and foreign institutional investors as well as selected investors.
Largest private port operator
Established in 2006, MMC Ports has grown into Malaysia’s leading container hub for both transhipment and gateway cargo. It ranks as the largest privately owned port operator in South-east Asia and fifth among global private terminal operators, measured by equity-adjusted throughput in 2023.
Its portfolio includes four of the country’s five largest ports by container throughput – the Port of Tanjung Pelepas, Johor Port, Northport and Penang Port – alongside Tanjung Bruas Port in Melaka. Two of these rank among South-east Asia’s top seven ports.
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Collectively, the group handled 18.5 million twenty-foot equivalent units of container throughput and 36.5 million freight weight tonnes of conventional cargo in 2024. Its three cruise terminals served about 1.5 million passengers in the same year, according to the draft prospectus.
Expanding capacity
MMC Ports chief executive officer Azman Shah Mohd Yusof said the listing marked a natural progression for the company as it seeks to raise its corporate profile and increase visibility among investors.
“Having established ourselves as Malaysia’s largest port operator, we look forward to embarking on the next phase of our corporate journey as part of our natural progression towards elevating our corporate profile and broadening our visibility among the investment community by tapping into the capital markets,” Azman said in a statement.
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He added that as Malaysia strengthens its role as a global transhipment hub, MMC Ports would step up investments to support trade and logistics infrastructure.
The company is expanding both container and conventional cargo handling capacity, while enhancing efficiency through digitalisation and automation to meet growing demand along the Strait of Malacca.
He noted that MMC Ports is also scouting for inorganic growth opportunities through strategic partnerships and acquisitions, aiming to capture benefits from global supply-chain reorganisation and the relocation of manufacturing and distribution hubs into the region.
Mega IPO
Bloomberg News reported in June that MMC Ports could raise about US$2 billion from the share sale, valuing the company at up to US$7 billion.
If completed, the offering would surpass any Malaysian IPO since plantation group FGV Holdings raised more than RM10 billion (about S$4.2 billion at the time) in 2012.
Citing sources, Bloomberg also reported that MMC Ports is finalising its prospectus and eyeing a debut on Bursa Malaysia in the second half of November.
The IPO is backed by a strong syndicate of local and international banks. CIMB Investment Bank is the principal adviser, joint global coordinator, joint bookrunner, sole managing underwriter and joint underwriter. The Hongkong and Shanghai Banking Corp, Singapore Branch, is also joint global coordinator and bookrunner.
AmInvestment Bank, Bank Muamalat Malaysia, CGS International Securities Malaysia, CLSA Ltd, CLSA Securities Malaysia, Jefferies Singapore Ltd, Kenanga Investment Bank, Maybank Investment Bank and RHB Investment Bank are joint bookrunners.
