The company joins a growing list of companies whose ACE Market debuts have disappointed amid weak market sentiment
FIBROMAT (M) Bhd saw its shares decline 10% on its debut on the ACE Market on May 8, following the company’s transfer from the LEAP Market.
The geotechnical solutions provider opened at 46 sen, below its IPO price of 55 sen.
The stock hit an intraday low of 41 sen before recovering slightly to close at 49.5 sen, with over 29 million shares traded.
At market close, the company was valued at RM123 million.
Fibromat joins a growing list of companies whose ACE Market debuts have disappointed amid weak market sentiment and increasingly selective investor appetite.
The group, via its wholly owned subsidiary MTS Fibromat (M) Sdn Bhd, specialises in geotechnical solutions, including erosion and sediment control, ground improvement, filtration and containment lining.
Its offerings span the design, manufacture and installation of geosynthetics, as well as the trading of erosion control products.
From its IPO proceeds of RM17.8 million, the company plans to allocate RM7.6 million (42.6%) for the purchase of new machinery, RM6.7 million (37.8%) for working capital and RM3.5 million (19.6%) for listing-related expenses.
Commenting on the listing, MD and CEO Ng Kian Boon said: “Today, with the RM17.8 million in funding successfully raised from our IPO exercise, we are going to utilise approximately RM7.6 million of the IPO proceeds to purchase two units of stitching machines that can produce jute-based erosion control blanket and four units of multi-filter bags dust collectors with ducting which can be connected to the erosion control blanket stitching machine.
All the new machines will be installed at our factory located at Rasa, Selangor, to expand our offering of erosion control blankets.”
He added that the company also plans to enhance its in-house capabilities by venturing into the installation of prefabricated vertical drains (PVD).
Ng added that Fibromat is actively bidding for key infrastructure projects in East Malaysia.
“Based on our past track record and practical experience in providing multiple pragmatic geotechnical solutions to contractors to build the West Coast Expressway in Peninsular Malaysia and to contractors to build the Sarawak Second Trunk Road and Sabah Pan Borneo Highway Phase 1A in East Malaysia, we are now actively bidding for multiple work packages for the Sabah Pan Borneo Highway Phase 1B project worth RM15.7 billion and the Sarawak-Sabah Link Road project worth RM7.4 billion in East Malaysia.”
He also noted that the company is actively bidding for multiple work packages for the maintenance of state roads and infrastructure worth RM5.4 billion under Budget 2025.
Coupled with the increase in production capacity in its new factory and setting up of its owned PVD installation team, Ng said it will be positioned to serve a wider range of customers which he is confident will translate into the delivery of better financial performance for the company.
M&A Securities Sdn Bhd is the principal advisor, sponsor, underwriter and placement agent for the IPO. — TMR
- This article first appeared in The Malaysian Reserve weekly print edition
The post Fibromat slips 10% on ACE Market debut appeared first on The Malaysian Reserve.
