Quick Note

Research evidence excerpt

Quick Note

Global Markets Research

IJM IJMS.KL IJM MK 20 July 2026

EQUITY: ENGINEERING & CONSTRUCTION

Media reports indicate IJMCON listing at MYR5bn indicative market cap Rating Remains Neutral

Target price MYR 2.40 RemainsQuick Note

Closing price MYR 2.29 17 July 2026

• According to an article in The Edge Weekly on 18 July (see “IJM eyes MYR 5bn

valuation for construction unit's IPO”), IJM has appointed investment banks to advise

on the listing, and is targeting a valuation of about MYR 5bn for IJM Construction Research Analysts

(IJMCON). Additionally, under the proposed transaction, IJM intends to retain a 70%

stake in the listed construction company, while 25% will be sold to new investors and Malaysia Engineering &

Construction the remaining 5% will be distributed to existing IJM shareholders as a dividend-in-

Tushar Mohata, CFA - NSM specie.

tushar.mohata@nomura.com

• Based on our analysis (see Fig.1), we see limited evidence of meaningful value +60(3)20276895

unlocking from IJM Corp's proposed listing of its Malaysia and Singapore construction Research Associates

business. Using our current forecasts and unchanged target valuation multiple of 20x

Malaysia Engineering & P/E, IJM's pre-spin-off (current) target price is MYR 2.40. Post-listing, however, IJM

Construction intends to retain only a 70% stake in the construction entity, with 25% sold to new

Alpa Aggarwal, CFA - NSFSPL investors and 5% distributed to existing shareholders via a dividend-in-specie. As a

result, a larger portion of the construction business' earnings will be attributable to

minority interests, reducing earnings attributable to IJM shareholders. Applying the

same 20x PE multiple to the lower post-listing earnings results in a standalone value

of approximately MYR 1.94 per IJM share.