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Sources say that Malaysia's MMC port is lining up investors for its October IPO.

MMC Port Holdings is looking to finalise the cornerstone investor list as soon as August. This will be in advance of an October listing on Bursa that could raise more than $1.5 billion.

According to LSEG, the IPO would be Malaysia’s biggest since IHH Healthcare’s $2.1 billion debut back in 2012 and Southeast Asia’s largest since Indonesian technology firm Bukalapak raised $1.55 billion in 2021.

Sources said that the country's largest port operator, MMC Corp., which is a fully owned subsidiary, has been in discussions with over 20 cornerstone investors.

Cornerstone investors tend to be large institutional funds who commit to purchasing shares before the IPO is open to the public.

The strong lineup will boost confidence and improve sentiment on the Malaysian IPO market. According to LSEG's data, the market raised $751.2 in the first six months of 2025. This is up 17.9% compared to a year ago.

Sources said that both domestic and international institutions were involved in the discussion, including BlackRock and UBS Asset Management. Malaysia's largest fund management company Permodalan Nasional Bhd, and the Employees Provident Fund, the country's largest pension fund.

Sources declined to name themselves as the information was private and ongoing discussions.

MMC Port, and its parent company, did not respond immediately to an email request for comments sent on Monday. BlackRock, PNB, and EPF did not respond immediately either. UBS declined comment.

Reports in February indicated that MMC Port could raise over 6 billion ringgit by the second half 2025.

The company that operates five ports on the Straits of Malacca - one of the busiest shipping routes in the world - filed a draft of a prospectus at the Securities Commission Malaysia late June, without specifying a timeline or the size of the IPO.

MMC Port reported a 9.2% decline in net profit in 2024 to 636.6 millions ringgit despite an almost 10% increase in revenue at 4.36 billion Ringgit.

The proceeds from the IPO are going to MMC Corp., which intends to sell up to 30% of its port unit. MMC Port won't receive any money from the listing. $1 = 4.2250 Ringgit (Reporting and editing by Kirtoultra Donovan; Yantoultra ngui)

(source: Reuters)