IJM confirms exploration of potential construction business IPO

PETALING JAYA (July 21): IJM Corp Bhd has confirmed that it is exploring the feasibility of a potential listing of its construction business, following a news report that the unit could be valued at up to RM5 billion.

In a Bursa Malaysia filing on Monday (July 20), the group said it will from time to time engage with and appoint relevant parties to evaluate available options, but stressed that the matter remains subject to further assessment.

“The Company wishes to clarify that it is currently exploring the feasibility of a potential listing of its construction business,” IJM said.

The group added that it will make further announcements as required under the Main Market Listing Requirements of Bursa Malaysia Securities Bhd.

The clarification follows a June 3 report by The New Straits Times, which cited analysts, including CGS International, as estimating that a potential listing could unlock RM3 billion to RM4 billion in equity value, with TA Securities placing a valuation of about RM2.6 billion, while some industry commentary has suggested it could be worth up to RM5 billion.

Analysts cited in the report said a potential listing could allow the construction business to be valued independently from IJM’s other segments, including property development, ports and toll concessions.

The report added that the proposed IPO could involve IJM’s Malaysian and Singapore construction operations, which, according to the report, have a combined order book of RM9.65 billion as at March.

Industry observers cited in the report also highlighted the construction arm’s exposure to infrastructure works, industrial facilities and data centre-related projects as potential valuation drivers.

However, IJM has not disclosed any details on the possible listing structure, valuation, timing, stake sale or proceeds from the potential exercise.

The company’s clarification indicates that the proposed listing remains at an exploratory stage, and there is no assurance that any listing will materialise.

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