IOI Properties poised for KLCI inclusion after sharp market cap surge, likely to replace Sime Darby — CIMB Securities

KUALA LUMPUR (April 30): IOI Properties Group Bhd (KL:IOIPG) is poised for potential inclusion in the FBM KLCI in the upcoming June semi-annual review, following a sharp rise in its market capitalisation.

The property developer’s shares have surged nearly 88% since the last review cut-off on Nov 24, 2025. The counter has climbed to 24th place among eligible securities by market capitalisation as at April 30, according to Bloomberg data.

“This suggests IOI Properties is poised for FBM KLCI inclusion, provided it maintains its top 25 ranking by the May 25, 2026 cut-off date for the June index review,” CIMB Securities said in a note on Thursday.

To qualify for inclusion, a stock must rank within the top 25 by market capitalisation as of the cut-off date, while a drop to 36th or lower could trigger removal. A company must also have at least 15% of its shares held by public investors.

In addition, a stock must meet liquidity requirements, including a monthly median daily trading volume of at least 0.04% of its shares in issue, adjusted for investability, in at least eight of the past 12 months.

CIMB Securities said IOI Properties’ inclusion would likely result in the removal of Sime Darby Bhd (KL:SIME), currently the smallest constituent on the index by market capitalisation.

IOI Properties is estimated to carry an index weight of about 1.05%, compared with Sime Darby’s current weight of 1.37%, it added.

IOI Properties recently announced plans to establish and list a real estate investment trust (REIT) comprising retail, office and hotel assets worth a total of RM7.58 billion. This will involve the injection of a portfolio of Malaysian properties — including IOI City Mall and IOI City Park — into the proposed trust, IOIPG Malaysia REIT, which will be listed on Bursa Malaysia's Main Market with an initial fund size of 5.5 billion units.

Among existing constituents, CIMB Securities said Maxis Bhd (KL:MAXIS) (-20%), Gamuda Bhd (KL:GAMUDA) (-17.5%) and Axiata Group Bhd (KL:AXIATA) (-12.3%) recorded the largest declines in market capitalisation since the last review, while PETRONAS Chemicals Group Bhd (KL:PCHEM) (+102.7%) and Press Metal Aluminium Holdings Bhd (KL:PMETAL) (+32.6%) were among the biggest gainers.

It added that Hong Leong Financial Group Bhd (KL:HLFG) is unlikely to qualify for re-entry into the index despite ranking 27th by market capitalisation, as it does not meet FTSE’s liquidity requirements.

The preliminary results of the next KLCI review are scheduled for announcement on June 3, followed by final confirmation on June 4. Any changes will take effect on June 22.