According to people with knowledge of the matter, Johor Corp. is considering an initial public offering of its plantation unit.

The investment arm of the Johor state government is looking at a valuation of $1 billion for the Kulim Malaysia unit, according to people. The people said that an IPO in Kuala Lumpur could happen as early as next year.

The Kulim listing would come as crude palm oil prices have fallen from their peak in March as Indonesia ramps up exports.

The size and timing of the IPO could change according to the people.

Hasnina Hafiz, head of group corporate communications for Johor Corp., said that the company is committed to improving the value proposition of Kulim.

Kulim will join Malaysia IPO candidates if Johor Corp. goes ahead with the plan. More than $400 million worth of IPOs have been hosted by Malaysia so far this year, up from $130 million in the same period in the previous year.

Kulim was incorporated in the UK in 1933. Johor Corp. became a major shareholder of Kulim after it was listed on the stock exchange. Kulim was taken private by the state-Owned firm.

There are 55,796 hectares of planted areas with oil palm trees in Malaysia and 7,362 hectares in Indonesia. In addition to plantation, Kulim has fruit and vegetable farming, livestock, trading and services.