MMC Port Holdings Bhd, Malaysia’s largest container port operator, has secured regulatory approval for its upcoming listing on the Main Market.
A timeline was not provided, though a company would have six months to complete an initial public offering (IPO) upon regulatory approval. The IPO comprises existing shares entirely, meaning that MMC Port itself will not get any of the proceeds to be raised.
“We are looking forward to embark on the next phase of our corporate journey as part of our natural progression,” MMC Ports chief executive officer Datuk Azman Shah Mohd Yusof said in a statement on Tuesday.
MMC Port runs Northport Port of Tanjung Pelepas and Johor Port in Johor, Northport in Selangor, Penang Port in Penang, Tanjung Bruas Port in Melaka, and Andaman Port in Kedah. The company also has three cruise terminals in the country.
The IPO could raise about US$2 billion (RM8.5 billion), according to a Bloomberg News report in June, all of which will go to privately-held MMC Corporation Bhd, controlled by Tan Sri Syed Mokhtar Al-Bukhary.
The company does not require additional equity funding for its business, MMC Port said in a draft prospectus filed in July. MMC Port has sufficient working capital for at least 12 month until June 2026, the company noted.
“We are already in the midst of expanding our container and conventional cargo-handling capacity, and enhancing our operational efficiency through digitalisation and automation, to meet the growing needs within the Strait of Malacca,” said Azman Shah.
MMC Port is also on the lookout for “strategic endeavours and partnerships” to tap global trade, as well as opportunities from the relocation of manufacturing activities, and regional distribution hubs and global supply-chain reorganisation, he added.
The proposed IPO involves a sale of up to 30% in MMC Port at a price to be determined later, and the company has enlisted a long list of bankers to manage the IPO.
CIMB Investment Bank is the principal adviser, joint global coordinator, joint bookrunner, sole managing underwriter, and joint underwriter. HSBC is also the joint global coordinator and joint bookrunner.
AmInvestment Bank, Bank Muamalat Malaysia, CGS International, CLSA, Jefferies, Kenanga Investment Bank, Maybank Investment Bank and RHB Investment Bank are the joint bookrunners.
Source: theedgemalaysia.com