KUALA LUMPUR: IJM Corporation Bhd
has announced that the group is progressing with preparations for the proposed listing of its wholly owned subsidiary, IJM Construction Sdn Bhd, which is expected in the third quarter of 2027.
IJM Corp group chief executive officer and managing director Datuk Lee Chun Fai said the group had commenced preparations for the proposed listing and was working towards the targeted timeline.
"We have not cast it in stone. Let the advisers and so on get down to work. At this stage, we will leave it as it is. When the time comes, we will share more details,” he told reporters at a media briefing following the company’s 42nd annual general meeting here today.
He said IJM Corp is targeting RM3 billion in distributions to shareholders over the next three years, equivalent to a total dividend of 83 sen per share, or an average of 28 sen per share annually, translating into a three-year yield of 30 per cent, or an average annual yield of 10 per cent.
The potential sources of the distribution include RM700 million in annual dividends over the next three years; RM300 million in special dividends from treasury shares; RM1.2 billion from the listing of IJM Construction; RM600 million from toll monetisation and RM200 million from its India exit.
Asked about the importance of the proposed IJM Construction listing, Lee said it would provide investors with a pure-play exposure to the construction sector, compared with IJM Corp’s diversified business portfolio.
"At the moment, when you invest in IJM Corp, you get a mixed bag of construction, property, industry, toll roads and ports. But if you look at IJM Construction, we believe it is a focused investment for investors who want pure-play exposure. So, that allows our investors to decide what their outlook is,” he said.
Lee said that the group would focus more on Singapore and the United Kingdom after exiting India, where it had ceased taking on external projects several years ago.
He said the India exit would be progressively but substantially achieved within two years.
"Today, we already have a 45 per cent-owned company called Hexacon Construction Pte Ltd in Singapore, doing construction.
"We could do more, so we have set up another branch in Singapore to undertake more construction projects,” he said.
IJM Corp expects operational performance to improve in the financial year of 2027 (FY2027), anchored by its strong construction order book, record industry pile orders, recovering property sales and stable infrastructure performance.
The construction division’s outstanding order book stood at RM14.5 billion, including IJM Corp’s share of associates in Singapore and UK.
IJM Construction secured approximately RM1.77 billion on new projects in FY2027 to date, including the RM658 million Elmina hyperscale data centre package and RM909.5 million in semiconductor and medical technology projects.
IJM Corp’s forward tender book stands at approximately RM18 billion. - Bernama
