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“IJM aims to list its construction arm by 2027 as part of a three-year value unlock plan following a failed takeover bid by Sunway.”
Kuala Lumpur, 23th April 2026, 2.00pm – IJM Corporation Berhad is accelerating plans to unlock shareholder value, including a proposed listing of its core construction business by end-2027.
The move comes shortly after a takeover attempt by Sunway Berhad failed to secure sufficient shareholder support earlier this month.
IPO framework to be finalised soon
According to a report by Kenanga Investment Bank, IJM is expected to finalise the framework for listing a pure-play construction entity within the next two months.
Once established, the proposed listing could proceed within a 12-month execution timeline, positioning the exercise as a key component of the group’s broader restructuring strategy.
Three-year plan to unlock value
The research house noted that IJM has set up a board-level committee to oversee a three-year asset monetisation and value creation programme.
At the operational level, management is focusing on improving efficiency while enhancing returns from its core business segments.
Strategic initiatives across portfolio
Beyond the potential IPO, IJM has outlined several initiatives aimed at strengthening its balance sheet and improving shareholder returns:
- Monetisation of land bank assets
- Rationalisation of its India operations
- Potential divestment or listing of toll road assets
Kenanga said the planned exit from India is expected to take place over a two-year period, allowing the group to optimise disposal value.
“With asset valuations already aligned with market levels, the divestment is likely to be executed without significant impairment risks,” the report noted.
Toll road plans may take longer
The group is also exploring the potential listing or business trust structure for its domestic toll road assets — excluding the West Coast Expressway.
However, the process may require more time due to regulatory approvals related to concession ownership.
Positive outlook maintained
Kenanga maintained an “outperform” rating on IJM, with a target price of RM3.40, citing the group’s ongoing restructuring efforts and value-unlocking initiatives.
Implications for investors
The proposed listing of IJM’s construction arm could provide investors with a pure-play exposure to Malaysia’s construction sector, while enabling the parent group to realise value from its diversified portfolio.
Combined with asset monetisation and portfolio rationalisation, the strategy reflects a broader shift towards capital efficiency and focused growth.
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