ACE Market-Bound Fibromat Aims To Raise RM17.8 Mln From IPO

PETALING JAYA, April 11 (Bernama) -- Fibromat (M) Bhd, en route to a listing on Bursa Malaysia’s ACE Market, aims to raise RM17.8 million from its initial public offering (IPO).

According to its prospectus, the geotechnical solutions and specialist engineering company’s IPO price is 55 sen apiece with listing scheduled for May 8, 2025.

The group plans to use RM7.6 million, or 42.6 per cent, of its IPO proceeds to purchase machinery; RM6.7 million (37.8 per cent) for working capital and RM3.5 million (19.6 per cent) for listing expenses. 

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Executive director Ng Chun Hou said new purchases include two sets of “erosion control blanket” machines with an environmentally friendly “dust collector” to be installed at its Rasa factory in Selangor. It will also acquire five units of hydraulic excavators. 

"This investment is part of its downstream efforts to increase profit margins and revenue,” he told a press conference after launching the company's prospectus today.

Ng also said Fibromat is bidding for several work packages in the Pan Borneo Sabah Highway Phase 1B project worth RM15.7 billion and the Sarawak-Sabah Link Road project worth RM7.4 billion in East Malaysia.

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It is also bidding for packages in the RM5.4 billion state road and infrastructure maintenance works under Budget 2024.

“We are strategically positioned to serve more customers with the increased production capacity at our new factory and the establishment of our prefabricated vertical drain (PVD) installation team,” he said.

Fibromat was listed on the LEAP Market on May 30, 2019. Its subsidiary provides geotechnical solutions and trades in geosynthetics and erosion control products.

Based on the enlarged share capital of 248.3 million ordinary shares, Fibromat is expected to have a market capitalisation of RM136.6 million. 

The IPO involves a public issue of 32.3 million new shares, representing 13.0 per cent of its enlarged issued share capital and an offer for sale of 24.8 million existing shares, or 10 per cent of its enlarged share capital.

The public issue comprises 12.4 million new shares for the Malaysian public, 6.2 million shares for eligible parties and 13.7 million shares to be allocated via private placement to identified bumiputera investors approved by the Investment, Trade and Industry Ministry (MITI).

The offer for sale comprises 17.4 million and 7.4 million existing shares to be allocated by way of private placement to MITI-approved bumiputera investors and selected investors, respectively, a statement said.

Applications for the public issue are open from today and will close on April 25, 2025, at 5 pm.

M & A Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.

 -- BERNAMA