This article first appeared in The Edge Malaysia Weekly on February 10, 2025 - February 16, 2025

When MMC Corp Bhd was taken private via a selective capital repayment (SCR) exercise in January 2022, the company, which manages five ports, was valued at close to RM6 billion.

Major shareholder Tan Sri Syed Mokhtar Albukhary already controlled 51.76% of the company, leaving him to deal with only the 48.24% who were non-interested shareholders. It cost him RM2.9 billion to mop up the minorities and take the company private.

Last week, it was reported that MMC had engaged several investment banks with the intention of going for a listing. The report stated that the exercise could be the biggest Main Market listing since healthcare operator IHH Healthcare Bhd (KL:IHH) went public in a transaction valued at RM9.4 billion.

The report added that the new MMC could fetch a value of as high as RM25 billion.

In the last four years, the dynamics of the port and logistics industry have not changed much. The results of Westports Holdings Bhd (KL:WPRTS) is ample evidence that the port business depends very much on global trade.

For MMC 2.0 to command lofty valuations, it has to be different from the old MMC. Will that be the case?

Moreover, if the port business was so profitable, why would Syed Mokhtar want to list it?

When MMC was taken private, the independent adviser had valued the company at between RM3.32 and RM3.41. It was far above the RM2 price tag that was offered to the disinterested shareholders.

And the reasons cited for the exercise was that the market did not fully appreciate the value of MMC, and that a privatisation would put the owners in a better position to develop the business without having to go through regulatory approvals.

But MMC’s core business is the same as it was four years ago. Will the market give MMC 2.0 a better value?

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