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Case Study Of IJM Corporation Berhad

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1.0 INTRODUCTION OF THE COMPANY AND EVENT IJM Corporation Berhad, formed in 1983, is an investment holding company which engages in business activities such as construction, property development, manufacturing and quarrying, infrastructure concessions and plantations. The company was an outcome of merger between IGB Construction Sdn Bhd, Jurutama Sdn Bhd and Mudajaya Sdn Bhd, three of them being a medium-sized local construction company. The idea of the merger was to keep up with bigger foreign competitors more effectively and it managed to gain market acceptance in a short amount of time. IJM Corporation Berhad is currently one of the largest property developers in Malaysia, making them a reputable contractor locally. The company has developed townships, condominiums and commercial buildings all over Malaysia. It has even successfully completed projects overseas in India, USA, Singapore and Australia. Over the past three decades, IJM Corporation Berhad has been consistently focusing on its main expertise, venturing into new markets and diversifying into related fields resulting in a phenomenal growth of the company. In addition, IJM Corporation Berhad became a public listed company during 1986, with a market capital worth of RM66 million and total assets worth of RM172 …show more content…

Hence, it is a type of capital spending where IJM Corp Bhd invests in a new project in order to increase their revenue. Since the news is considered as a positive news and is beneficial to IJM Corp Bhd, it tends to have a positive effect on the company’s share prices. The company is attracting investors by doing so, which leads to an increase in share price as investors think that this investment has the potential to gain

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