WASHINGTON: A Malaysian tycoon is seeking to raise at least $700 million through an initial public offering of port assets, according to people familiar with the situation, which would be the country’s biggest IPO since April 2015. Syed Mokhtar Al-Bukhary, who controls Malaysia-listed MMC Corp. Bhd., plans to list some of the company’s port assets next year, according to the people, potentially creating the biggest listed port operation in Malaysia. Part of the funds will be used to cut the company’s debt.
An MMC spokeswoman didn’t respond to requests for comment. The initial offering would be Malaysia’s biggest since April last year, when Malakoff Corp. Bhd. raised $754 million through an IPO.
MMC is a holding company with construction and energy businesses in addition to the port assets. It is the single largest shareholder of both Malakoff, Malaysia’s largest independent power producer, and Gas Malaysia Bhd., Peninsular Malaysia’s sole supplier of natural gas to the nonpower sector.
Slumping prices of oil and other commodities have held down investor appetite for new Malaysian share offerings in recent years. First-half IPO volume in Malaysia was just $210 million, compared with $853 million a year earlier, according to Dealogic data. The outlook for the rest of the year looks weak, apart from a potential $500 million offering by an overseas unit of Malaysian developer Eco World International, aimed for September or October. The country’s benchmark stock index is one of the worst performers in Southeast Asia in 2016, down 1.2% this year as of Monday’s close, compared with a 6.9% rise for the MSCI Asia ex-Japan index as of midday Monday.
