KUALA LUMPUR (July 1): MMC Port Holdings Bhd has filed for an initial public offering (IPO) in a listing that could raise billions of ringgit for tycoon Tan Sri Syed Mokhtar Al-Bukhary.

The IPO involves sale of up to 30% in MMC Port at a price to be determined later, and no issuance of new shares, meaning that the company itself will not get any of the proceeds, according to its draft prospectus. Syed Mokhtar controls MMC Port through privately-held MMC Corporation Bhd.

“Our board is of the view that our company presently does not require additional equity funding for our business,” MMC Port said.

There would be an institutional offering and a retail tranche under the IPO. The final IPO price will be equal to the lower of the indicative retail price or the institutional price fixed after bookbuilding.

The share sale could raise about US$2 billion (RM8.5 billion) targeted for as soon as September, according to Bloomberg. The planned listing could value the company at as much as US$7 billion, the newswire reported citing unidentified people familiar with the matter.

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 company was part of MMC Corp delisted in a privatisation that values the company at over RM6 billion in 2021. In 2024, MMC Port generated a net profit of RM636.56 million on revenue of RM4.36 billion.

MMC Port had cash and bank balances of RM347.3 million at the end of 2024, out of which cash generated from operations amounted to over RM2 billion. Borrowings meanwhile totalled RM5.37 billion.

“Our board believes that we have sufficient working capital for at least 12 months” until June 2026, the company noted.

MMC Port will seek cornerstone investors for its IPO. Cornerstone investors — typically large institutional investors such as pension funds and insurers — commit to take up a portion of IPO shares before they are marketed to other retail and institutional investors.

Their presence helps to build up other investors’ confidence for the shares during the IPO. MMC Port has an overallotment option involving another 4.5% stake if demand from investors is overwhelming during the IPO.

CIMB Investment Bank is the principal adviser, joint global coordinator, joint bookrunner, sole managing underwriter and joint underwriter. HSBC is the joint global coordinator and joint bookrunner. The company will add other bookrunners and underwriters later.