IJM Land/IJM Corp ... May 09

Sources say the EPF and PNB are poised to emerge as shareholders in IJM Land Bhd via a placement of shares undertaken by the latter’s parent IJM Corp Bhd. The placement is said to be priced at less than Rm1.30 a share.

It is learnt that IJM Corp is undertaking the private placement of up to 200 million shares, or about 18%, in IJM Land. The construction giant aims to pare down its current equity of 76.54% in its property arm to about 58% to 60%.


The exercise is expected to be finalised soon. Besides EPF and PNB, other local and foreign funds will take up a smaller portion of the shares in IJM’s property development arm.

EPF is already an indirect substantial shareholder in IJM Land via its 20.64% stake in IJM corp.

The placement of shares to EPF and PNB will further institutionalize the shareholding structure of IJM Land and enhance the ratings and the tradability of the stock, which is now (May 2009) tightly held by IJM Corp and GSIC.
The current free float of IJM Land’s shares is less than 16% or 180 million shares. Other than IJM Corp’s 76.54% stake, GSIC holds about 7.44% stake in IJM Land.

*** IJM Land, in its current form, is a result of the injection by IJM Corp of its property assets and development projects into RB Land Holdings through asset rationalization exercise in the middle of 2008. RB Land had shareholders’ funds of RM693 million before it absorbed IJM Corp’s property assets. Following the exercise, the company’s book value gas since increased to RM1.52 billion as at Dec 31, 2008.

IJM Land was at that time already a subsidiary of IJM Corp following the merger between IJM Corp and RB Land’s parent, Road Builder Holdings Bhd in 2007.

About IJM Land …
It posted a net profit of RM24.43 million for the nine months ended Dec 31, 2008.

IJM Land will soon embarks on its flagship waterfront development project in Penang called The Light. The project is located on a 61.5ha site, just off the Penang Bridge, on the eastern of Penang Island. It will be developed in three phases over 12 years, with an estimated total GDV of RM5.2 billion.

Related:-
IJM Land Bhd ... May 09
IJM/Gamuda
IJM ... Oct 2008
ICP/IJM ... Sept 2008