The Haney Group are informing clients on IJM Corp as the diversified Malaysian building group announced plans that it may offer some assets to investors.
The Haney Group a boutique equity research and management firm based in Hong Kong founded by a diverse private wealth consortium of financial professionals, with a combined knowledge of the stock markets, tax legislation, legal compliance and market analysis. Priding themselves in giving the very best service to their institutional investors, high net worth individuals and private investors today made comment to investors in relation to Malaysia's second largest builder by market value IJM Corp.
IJM has revealed plans that it may seek to boost its share value by allowing investors access to some of its more profitable ongoing concessions by means of initial public offering as a business trust or straight sale. The Selangor based company has used this approach in recent times with favorable outcomes for its share value and capital raising exercises. Teh Kean Ming the company's CEO made a statement to say they have intentions to monetize the value of some of more mature route concessions in Malaysia and commented to say that it was too early to predict which assets they may use, awaiting valuation from the investing fraternity.
The most recent examples of this being the sale in March of the company's 36 percent shareholding of the Trichy toll way in India for a profit of $15 million, followed shortly thereafter by the disposal of their equity stake in Kuantan Port operations. Infrastructure business such as these accounted for around 10 percent of the company's overall revenue and as such is expected to be facilitated among those offered to investors.
"Diversified is an often over used term people use to describe companies, but with IJM it's an apt one, more so with regards to their infrastructure holdings and concession equity stakes, it is easy to overlook the real value they present. Any IPO that combines these together will be much sought after by savvy investors as to put the same package together bit by bit would be daunting and wouldn't present the good returns expected," announced David Roberts, the Senior Vice President of Mergers and Acquisitions at The Haney Group.
The Haney Group analysts see IJM utilizing any capital raised through equity and asset sell offs to be used to boost the company's expansion in both property and building as well as the oil and gas sector, acquisitions both of which have been favorite purchases for the company over the last twelve months. The building company has had a strong year to date generating return on investment of 14 percent easily outperforming the Bursa Malaysia KLCI index's gains of 5.3 percent.
"A lot of the strength held by IJM has come from it being involved from the early start up stages, holding equity in their concessions. The market is progressively getting harder to enter unless you are directly involved in the projects and it is increasingly hard to obtain equity let alone diverse stakes. Any chance to pick up equity either directly or as part of an IPO is of great interest to investors and we will be following the details closely as they come to light for our clients," added David Roberts, the Senior Vice President of Mergers and Acquisitions at The Haney Group.