MMC Ports, Malaysia's Largest Port Operator, Gains Approval for Landmark IPO

MMC Ports, Malaysia's largest port operator controlled by Syed Mokhtar AlBukhary, has secured approval from the Securities Commission Malaysia for an initial public offering (IPO). This IPO is poised to be the largest in Malaysia in over a decade. The preliminary prospectus indicates that the offering will encompass the sale of up to 4.2 billion existing shares, representing a 30% stake in the company. MMC Corp, the parent company, will maintain a 70% ownership stake following the IPO. MMC Ports will not receive any proceeds from the offering, as no new shares are being issued, and has affirmed that it does not require additional equity funding to support its business expansion. While the IPO timeline and share pricing remain undisclosed, prior reports suggest the sale could raise approximately $2 billion, valuing MMC Ports at $7 billion. In 2024, MMC Ports reported an 11% revenue increase, reaching 4.4 billion ringgit, fueled by the growth of intra-Asian trade. The company's five terminals managed a total of 18.5 million twenty-foot equivalent units (TEUs) during the year. Notably, the Port of Tanjong Pelepas, a joint venture with APM Terminals, significantly contributed, handling over 12 million TEUs, approximately 65% of MMC's total volume. Although a dominant player in the domestic market, MMC Ports' transhipment volume is less than that of its regional competitor, PSA Corp in Singapore, which handled over 40 million TEUs last year. The prospectus emphasizes MMC Ports' strategic location along the Strait of Malacca as a critical transshipment hub within Southeast Asia.