Major Malaysian Port Operator Seeks Cornerstone Investors for Landmark IPO
MMC Port Holdings, a prominent Malaysian port operator, is reportedly on track to finalize its lineup of cornerstone investors this month, in anticipation of a potential landmark initial public offering (IPO) on Bursa Malaysia in October. According to two anonymous sources familiar with the ongoing discussions, the IPO could successfully raise more than US$1.5 billion. If this target is achieved US$1.5 billion,the offering would be the largest in Malaysia since the US$2.1 billion debut of IHH Healthcare in 2012. It would also stand as Southeast Asia’s biggest IPO since Indonesian tech company Bukalapak raised US$1.5 billion in 2021, according to data from LSEG. As a wholly owned subsidiary of the conglomerate MMC Corp, the country’s largest port operator is currently in talks with over 20 potential cornerstone investors. These investors are typically large institutional funds that agree to purchase a significant portion of shares before an IPO is officially opened to the public, a move that is crucial for building market confidence.
Building Market Confidence with Institutional Support
A strong and diverse lineup of cornerstone investors is expected to provide a major boost of confidence for the upcoming offering and positively influence sentiment in Malaysia’s broader IPO market. Data from LSEG shows that the market raised a healthy US$751.2 million in the first half of 2025, marking a 17.9% increase year-on-year. The discussions for the IPO are said to involve both domestic and global institutions, including major players such as BlackRock, UBS Asset Management, Malaysia’s largest fund manager Permodalan Nasional Bhd (PNB), and the country’s largest pension fund, the Employees Provident Fund (EPF). The sources, who remain anonymous due to the private nature of the ongoing talks, noted that MMC Port and its parent company, MMC Corp, did not immediately respond to requests for comment. Similarly, representatives from BlackRock, PNB, and EPF also did not respond, while UBS declined to comment on the matter, indicating the sensitivity and ongoing nature of the negotiations.
Strategic Listing with Long-Term Goals
Reuters had previously reported in February that MMC Port’s IPO could raise over 6 billion ringgit in the second half of 2025. The company, which strategically operates five ports along the Straits of Malacca—one of the world’s most vital and busiest shipping lanes—submitted a draft prospectus to the Securities Commission Malaysia in late June. While the filing did not specify the final size or timeline of the IPO, it did provide key financial insights. The draft prospectus revealed that MMC Port experienced a 9.2% drop in net profit in 2024, falling to 636.6 million ringgit, even as its revenue increased by nearly 10% to 4.36 billion ringgit. It is important to note that the proceeds from this IPO are not intended for MMC Port itself. Instead, the funds will go to its parent company, MMC Corp, which plans to divest up to a 30% stake in its port unit. This strategic move suggests a clear objective by the parent company to unlock the value of its port assets and raise capital for its own corporate purposes.
