SINGAPORE: MMC Port Holdings aims to finalise its cornerstone investor lineup as early as August, ahead of a planned listing on Bursa Malaysia in October that could raise over $1.5 billion, two sources with knowledge of the matter told Reuters.
The IPO would be Malaysia's biggest since IHH Healthcare's $2.1 billion debut in 2012, and Southeast Asia's largest since Indonesian tech firm Bukalapak raised $1.5 billion in 2021, according to LSEG data.
The country's biggest port operator, a wholly owned unit of conglomerate MMC Corp, is in talks with more than 20 potential cornerstone investors, the sources said.
Cornerstone investors are typically large institutional funds that commit to buying shares before an IPO opens to the public.
A strong lineup is expected to bolster confidence in the offering and lift sentiment in Malaysia's IPO market, which, according to LSEG, raised $751.2 million in the first half of 2025, up 17.9% from a year earlier.
Both domestic and global institutions are involved in the discussions, including BlackRock, UBS Asset Management, Malaysia's largest fund manager Permodalan Nasional Bhd (PNB), and the Employees Provident Fund (EPF), the country's biggest pension fund, the sources said.
The sources declined to be named as the information is private and discussions are ongoing.
MMC Port and its parent company did not immediately respond to an emailed request for comment on Monday. BlackRock, PNB and EPF also did not immediately respond. UBS declined to comment.
Reuters reported in February that MMC Port's IPO could raise more than 6 billion ringgit in the second half of 2025.
The company, which operates five ports along the Straits of Malacca, one of the world's busiest shipping lanes, filed a draft prospectus with the Securities Commission Malaysia in late June without specifying the IPO size or timeline.
According to the filing, MMC Port posted a 9.2% drop in 2024 net profit to 636.6 million ringgit, despite a nearly 10% rise in revenue to 4.36 billion ringgit.
Proceeds from the IPO will go to MMC Corp, which plans to divest up to a 30% stake in its port unit. MMC Port will not receive any funds from the listing. ($1 = 4.2250 ringgit) - Reuters
