This article first appeared in The Edge Malaysia Weekly on November 24, 2025 - November 30, 2025

MMC Port Holdings Bhd’s multibillion-ringgit initial public offering (IPO) — initially slated for the fourth quarter of 2025 and later reported to have been delayed to mid-2026 — will likely be scrapped, banking sources tell The Edge.

The listing plan is understood to have been abandoned because the valuations sought by the promoters — MMC Corp Bhd and its sole shareholder Tan Sri Syed Mokhtar Albukhary — were deemed too high by fund managers.

“It’s off … everyone knows it’s off,” says a banker who spoke on condition of anonymity, referring to MMC Port’s IPO. A number of other bankers say the same when contacted.

However, a source in the financial sector says: “From my checks, it seems there is no final decision yet on whether to scrap or proceed with the IPO at lower valuations at a later date.”

MMC Port chairman Tan Sri Che Khalib Othman and CEO Datuk Azman Shah Mohd Yusof did not respond to queries from The Edge. The bankers involved also did not comment when approached via their investor relations representatives.

MMC Port secured regulatory approval in September to list on the Main Market of Bursa Malaysia. The initial plan was for an offer for sale of 4.27 billion shares, representing a 30% stake, by the port operator’s sole shareholder MMC Corp, which was taken private in 2021.

Syed Mokhtar, who controlled 51.76% of MMC Corp at the time, forked out RM2.94 billion or RM2 per share to acquire the remaining shares he did not own via a selective capital repayment, valuing the entire MMC Corp at RM6.09 billion.

At the time, MMC Corp also owned stakes in the country’s largest independent power producer, Malakoff Corp Bhd (KL:MALAKOF)(37.6%), and Gas Malaysia Bhd (KL:GASMSIA)(30.9%). It also owned airport operator Senai Airport Terminal Services Sdn Bhd, water treatment outfit Aliran Ihsan Resources Bhd and MMC Engineering Group Bhd.

So, it is baffling how MMC Port, being carved out of the MMC Corp group for the IPO, grew to be valued at more than RM29 billion.

MMC Corp’s net asset value per share (NAVPS) in June 2021, prior to its privatisation, was RM3.21, about 160% higher than the RM2 offer. Even if MMC Corp had been trading on a par with its NAVPS, the company would have been worth RM9.77 billion — significantly lower than the current valuation sought for its port division.

Nearly 93% or 3.96 billion shares of MMC Port’s IPO are for institutional investors, with the remaining 286.1 million shares being reserved for the port operator’s directors and key senior management members, according to its draft prospectus.

MMC Port’s key assets include a 70% stake in Port of Tanjung Pelepas Sdn Bhd and 100% ownership of Penang Port Sdn Bhd, Johor Port Bhd and Northport (M) Bhd in Port Klang. It also owns Tanjung Bruas Port Sdn Bhd in Melaka and Andaman Port in Kedah.

News reports initially indicated that the IPO’s promoters were looking to raise as much as US$2 billion or RM8.5 billion from the share sale, valuing the port operator at almost US$7 billion or RM29.6 billion at the exchange rate then. However, a number of analysts had pegged the valuation at closer to RM20 billion.

A main point cited by fund managers and analysts was MMC Port’s reluctance to issue new shares to raise fresh capital via the listing.

It opted only for an offer for sale, meaning proceeds would go entirely to the ultimate sole shareholder, Syed Mokhtar. MMC Port stated in its draft prospectus that it did not require additional equity funding, and that it had sufficient working capital until June 2026.

This created some trepidation, as it means the company — despite being the largest port operator in the country — would have to borrow or use its own capital to acquire new equipment (for example, quay cranes, reach stackers and prime movers) as the IPO proceeds would not benefit the company at all.

In September, upon securing regulatory approval, CEO Azman Shah said: “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 growing needs within the Strait of Malacca.”

He added that MMC Port was looking for “strategic endeavours and partnerships” to tap global trade and opportunities that arise from the relocation of manufacturing activities and regional distribution hubs, and global supply-chain reorganisation. These initiatives could have been funded by the company’s IPO proceeds, if the listing had involved the issuance of new shares.

A positive development for MMC Port occurred in July, when tariffs at Port Klang were raised by 30%, to be phased in over three years. But this still cannot justify such lofty valuations for MMC Port.

MMC Port’s rival is Westports Holdings Bhd (KL:WPRTS), which operates a single terminal in Port Klang, about 40km away from Northport. As at its closing price of RM5.35 last Thursday, Westports had a market capitalisation of RM18.31 billion and a price-earnings ratio of below 19 times.

Westports posted a net profit of RM897.98 million on a revenue of RM2.34 billion for its financial year ended Dec 31, 2024, while MMC Port earned RM636.56 million on a revenue of RM4.36 billion.

This is despite Westports handling a much lower throughput of 11 million 20ft equivalent units (TEUs) during the year than MMC Port’s 18.37 million TEUs. 

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