Core Viewpoint - MMC Ports, a Malaysian port operator, has received approval for an IPO aiming to raise $2 billion, marking the largest IPO in Malaysia since 2012 [1][7] Group 1: Company Overview - MMC Ports was established in 2006 and is the largest private port operator in Southeast Asia, operating five major ports with a total of 92 berths and a coastline of 19,394 meters [3][5] - The company achieved a container throughput of 18.5 million TEUs in 2024, ranking as the 13th largest port operator globally and the 5th largest private operator [3][5] Group 2: Key Assets - The most significant asset is the PTP terminal, where MMC Ports holds a 70% stake in a joint venture with Maersk, featuring a 5-kilometer coastline and a capacity of 12.5 million TEUs [5][6] - PTP terminal has shown impressive growth, with a compound annual growth rate (CAGR) of 4.1% from 2014 to 2024, and a throughput of 12.25 million TEUs in 2024 [5][6] - Another key asset, the Klang North Port, achieved a container throughput of 3.7 million TEUs in 2024, with a CAGR of 6.1% from 2019 to 2024 [6] Group 3: Financial Performance - MMC Ports reported a revenue of 4.357 billion MYR (approximately 7.381 billion RMB) and an EBITDA of 2.023 billion MYR (approximately 3.428 billion RMB) in 2024, with an EBITDA margin of 46.4% [6] - The company has experienced steady revenue growth with a CAGR of 3.6% and an EBITDA CAGR of 6.6% from 2022 to 2024 [6] Group 4: Future Plans - Future expansion plans include adding new berths and container yards at PTP and Klang North Port, as well as enhancing the liquid bulk handling capacity at Johor Port [6] - By 2029, MMC Ports aims to increase its container and cargo throughput capacity to 26.9 million TEUs and 66.1 million tons, respectively [6] Group 5: Market Context - The IPO will offer up to 4 billion shares to domestic and international institutional investors, representing approximately 27% of MMC Ports' equity [7] - Despite the growth potential, concerns exist regarding the pricing and fee structures compared to competitors, as well as the high valuation multiples compared to global averages [7]