KUALA LUMPUR: IJM Corp Bhd said that it is on track to distribute a total of RM3 billion over the next three years to its shareholders, with RM575 million has been distributed so far, which will provide its shareholders a basis to value the group better compared with just banking on its annual earnings.
Over the next 3 years, or by 2028, as much as RM2.5 billion worth of dividends are going to be distributed by IJM, mainly from the planned listing of IJM Construction Sdn Bhd and IJM's toll assets.
"This exercise basically says that a lot of these assets, once you unlock, there's a lot of value that you can get [compared to the earnings that IJM has reported]," said Datuk Lee Chun Fai, group chief executive officer and managing director of IJM.
However, a large chunk of the distribution, expected at RM600 million, that will come from the monetisation of its highway assets in Malaysia, is still up in the air, as the group will have to get the government's approval as well as investors' appetite.
"Our highway is a bit complicated because we need to change the financing and get approval from the government," said Lee, adding that potential yields of the assets is also something that needs to be addressed, as it will affect the valuation of the highway assets.
IJM expects the monetisation of the highway assets to take place in 2028.
On Aug 20, IJM completed the complete resale—rather than a direct dividend distribution—of its entire block of treasury shares through the open market on Bursa Malaysia.
By returning these shares to public circulation, the entire 3.65 billion share base became fully entitled to the subsequent 10 sen special dividend payout.
"Our shareholders express that they are pleasantly surprised, because we typically dont declare dividends in Q1.
Together with the earlier dividend of 6 sen, all in all we have paid out RM575 million (to the shareholders) and we are only 5 months into the distribution plan," said Lee during a press conference following the group's 42nd Annual General Meeting today.
Next, IJM is on track to dispose three parcels of development land in India, as well as monetise its two highway concessions there. The exit from India is expected to raise RM200 million for the group to distribute.
The bigger portion of the plan – the listing of IJM Construction, is expected to provide RM1.2 billion towards the group's distribution plan. The listing is expected to be done in the third quarter of 2027.