KUALA LUMPUR: Johor Corp Bhd (JCorp) is revisiting plans to relist its plantation arm Kulim (Malaysia) Bhd.
A Kulim relisting will surely boost Malaysia's stock exchange given the company's size but any investor excitement should be capped as it is not expected to happen so soon.
Kulim managing director Mohd Faris Adli Shukery said the 88-year-old company, which was delisted five years ago, had been targeted for a relisting by 2024.
Much of the relisting plans is more or less tied to Kulim's five-year transformation plan, which was unveiled today in conjunction with its 88th anniversary, to become a leading agribusiness player.
Mohd Faris said one of his first tasks after joining Kulim in October last year was to streamline its strategic direction.
This included the divestment of non-core businesses and assets, striking-off dormant companies as well as the enhancement of organisation structure.
He said the corporate exercise was expected to be completed by the end of the year.
"With the (right) timing and a favourable market, we should be able to list Kulim (again). The relisting will also be dependent on the company's restructuring plans, especially with the divestment of the non-core business and assets," Mohd Faris said at a virtual media briefing today.
Kulim was listed on the Main Board of the then Kuala Lumpur Stock Exchange in 1975, before being delisted in 2016.
In its financial year 2020, the company registered a growth of 17 per cent in revenue to RM1.41 billion from RM1.21 billion in 2019.
Kulim said this was driven by the company's resilient manpower, aided by the digitalisation programme under the transformation plan.
The listing of Kulim would be part of JCorp's large-scale restructuring exercise, according to reports.
Earlier reports quoted then JCorp president and CEO Datuk Kamaruzzaman Abu Kassim as suggesting that expanding Kulim's landbank to at least 100,000 hectares would be a precursor to its relisting.
"We are keen to explore opportunities to expand the size of our landbank. Perhaps, with a size of not less than 100,000ha, we will be able to relist the company. Barring any unforeseen circumstances, we are looking at about a period of two years to take Kulim back to Bursa Malaysia," Kamaruzzaman said in a May 2018 report.
Kamaruzzaman subsequently retired on December 31 2019.
Mohd Farid had recently reiterated the statements, saying the relisting would be done once Kulim was able to add tens of thousand hectares of plantation land.
Currently, the company's landbank stands at 55,000ha in Malaysia and Indonesia.
Meanwhile, Mohd Faris, when unveiling its transformation plan, said to strengthen its business, Kulim was in the process of expanding its production and increasing revenue streams.
"This will be done not only through organic growth and acquisitions, but may include collaborations and partnerships with third parties. We are also exploring to move into the downstream segment with established players. This is important for us to capture the margin of the entire value chain," he added.
At the event, Mohd Faris also revealed Kulim's new logo and corporate video as part of its rebranding exercise to portray a strong and more prominent Kulim as part of corporate Malaysia.
The company also launched the #kulim88 and #kulimpeduli campaigns to help those who were affected by the pandemic.
The campaign targets to assist 1,500 recipients in Malaysia.
Both initiatives are in collaboration with various foundations such as MyFunAction, Yayasan JCorp and other strategic local Johor agencies.