Has Mmc Ports Ipo Stalled As Investors Push Back On Sky High Valuation

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THE much-hyped initial public offering (IPO) of MMC Port Holdings Bhd (MMC Ports) – poised to be Malaysia’s largest in over a decade – may now be facing a delay as concerns over its ambitious valuation mount.

When MMC Ports filed its draft prospectus in June, expectations soared. The listing was designed to raise RM6 bil-RM8 bil (US$1.5 bil-US$2 bil) by selling up to 30% of the company, implying an enterprise valuation of RM25 bil-RM29 bil.
If successful, MMC Ports would eclipse any IPO on Bursa Malaysia since 2012.
It would be Malaysia’s biggest since IHH Healthcare Bhd’s US$2.1 bil debut that year and Southeast Asia’s largest since Indonesian tech firm Bukalapak raised US$1.5 bil in 2021, according to LSEG data.

But the mood has shifted. Bankers and investors now opine that the deal may slip beyond its targeted October 2025 launch – not because of technical delays – but because the market is balking at the price.
An expensive bet on growth
At the heart of the scepticism is valuation. MMC Ports is seeking a 25x-39x price-to-earnings (P/E) multiple, a steep premium to regional peers. Locally, Westports Holdings Bhd – a publicly traded competitor – is priced at around 20× trailing P/E.
Investors argue that MMC Ports simply does not offer the financial performance to justify such a premium.
In 2024, its net profit fell 9.2% to RM636.6 mil even as revenue climbed 10% to RM4.36 bil. Rising costs, global trade disruptions and a stronger greenback have already squeezed margins, raising questions over whether the IPO price bakes in blue-sky assumptions.
“This is a classic case of pricing ambition running ahead of fundamentals. Investors want to see re-investment into capacity and technology, not just a cash-out by the controlling shareholder,” one fund manager told FocusM on condition of anonymity.

Cornerstone commitments in doubt
To succeed, the IPO must secure heavyweight cornerstone investors willing to buy and hold large blocks of shares.
Reports suggest Permodalan Nasional Berhad (PNB), the Employees Provident Fund (EPF), BlackRock and UBS have all been approached. Yet, insiders say final commitments are stuck on a single sticking point: price.
Reuters had reported that the IPO was on track for October but sources now caution that unless MMC Ports revises its valuation, cornerstone allocations may fall short. Without that backing, the book-building process could unravel quickly.
Pure cash-out, no re-investment
Even if pricing concerns are addressed, another issue clouds investor sentiment: the IPO is structured as a pure offer for sale.
Every ringgit raised will flow to parent MMC Corp Bhd which is controlled by tycoon Tan Sri Syed Mokhtar Albukhary. None of the proceeds will be injected back into MMC Ports for expansion, debt reduction or sustainability projects.
That design has raised uncomfortable optics. Investors see a company that has benefited from decades of taxpayer-funded infrastructure and grant – from the Mahathir-era fiscal stimulus packages to more recent facilitation funds – now being monetised for private gain with little direct benefit to the ports themselves.

“This is a privatise-low, re-list-high strategy,” one analyst observed, pointing to MMC Corp’s 2022 privatsation at a valuation of just RM6 bil. “Three years later, the same ports are being floated at four to five times that value without a single sen going into the business.”
A delicate balancing act
The stakes extend beyond MMC Ports. Bursa Malaysia itself has struggled to attract blockbuster IPOs in recent years with most big-ticket listings gravitating toward Singapore and Hong Kong.

A successful MMC Ports debut would not only inject liquidity but also showcase Malaysia’s ability to deliver investible infrastructure plays.
For MMC, the challenge is stark. Push ahead at the current valuation and risk a flop or re-price, trim expectations and deliver a deal that leaves money on the table but builds credibility.
For regulators and institutional investors, the decision is just as delicate: how to balance the prestige of a headline-grabbing IPO with the need for sustainable, investor-friendly market practices.
As October looms, MMC Ports stands at a crossroads. Its IPO could mark a triumphant return of Malaysia to the big-league capital markets -or a cautionary tale of ambition overshooting reality. –  Focus Malaysia

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