KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Takeaway: Malaysia’s largest container port operator, MMC Port Holdings Bhd, has received regulatory approval for a Main Market listing that could raise around RM8.5 billion. The IPO will involve up to 30% of existing shares, with proceeds going to parent company MMC Corporation.
MMC Port Holdings Bhd, the country’s biggest container port operator, has secured approval to proceed with its highly anticipated initial public offering (IPO) on Bursa Malaysia’s Main Market.
The proposed listing, which must be completed within six months of approval, will involve a sale of up to 30% of existing shares. Importantly, all shares offered will come from parent company MMC Corporation Bhd, which is controlled by Tan Sri Syed Mokhtar Al-Bukhary. As a result, MMC Port itself will not receive any of the IPO proceeds.
According to Bloomberg, the offering could raise as much as US$2 billion (RM8.5 billion), making it one of the largest Malaysian IPOs in recent years.
Chief executive officer Datuk Azman Shah Mohd Yusof described the listing as part of the group’s “natural progression,” highlighting ongoing investments to expand container and conventional cargo capacity, as well as digitalisation and automation initiatives. These moves are aimed at strengthening efficiency and positioning MMC Port to capture the growing trade flows through the Strait of Malacca.
MMC Port operates a broad portfolio of assets, including:
Port of Tanjung Pelepas and Johor Port in Johor
Northport in Selangor
Penang Port in Penang
Tanjung Bruas Port in Melaka
Andaman Port in Kedah
Three cruise terminals across Malaysia
The company’s draft prospectus, filed in July, emphasized that it has sufficient working capital until June 2026, meaning no fresh equity is required to fund operations. Instead, the IPO represents an opportunity for MMC Corporation to unlock value.
Looking ahead, MMC Port is also exploring strategic partnerships and opportunities from global supply-chain reorganisation, manufacturing relocations, and the rise of regional distribution hubs.
The deal is being backed by a large consortium of banks. CIMB Investment Bank is acting as principal adviser, joint global coordinator, joint bookrunner, sole managing underwriter, and joint underwriter. HSBC is also joint global coordinator and bookrunner, while AmInvestment Bank, Bank Muamalat Malaysia, CGS International, CLSA, Jefferies, Kenanga Investment Bank, Maybank Investment Bank, and RHB Investment Bank serve as joint bookrunners.
Bottom Line: MMC Port’s IPO is set to be a landmark deal for Malaysia’s equity market. While the company itself won’t raise fresh capital, the listing could provide investors exposure to a dominant player in regional trade with long-term growth opportunities tied to global supply-chain shifts.
Comments
Post a Comment