KUALA LUMPUR (April 11): Geotechnical services provider Fibromat (M) Bhd on Friday launched the prospectus for its initial public offering (IPO) on the ACE Market, pricing the IPO at 55 sen a share to raise RM17.8 million.
It is planning a public issue of 32.3 million new shares, alongside an offer for sale of 24.8 million existing shares.
The IPO, which is part of Fibromat's listing transfer from the LEAP Market, is open for application until April 25 and is scheduled for listing on May 8. Based on the IPO price, Fibromat will have a market capitalisation of RM136.6 million.
Proceeds from the IPO will fund the purchase of new machinery — including stitching machines and dust collectors — as well as support the formation of an in-house prefabricated vertical drain installation team and the acquisition of five hydraulic excavators. These efforts are aimed at expanding its in-house capabilities and boosting operational capacity at its Selangor-based factory.
“We’re now a more integrated geotechnical solutions provider with stronger capacity and are ready to capture a larger market share,” said managing director and chief executive officer Ng Kian Boon.
Fibromat’s core offerings include design, manufacturing, installation, and trading of geosynthetics and erosion control products. Past projects include the West Coast Expressway, Sarawak Second Trunk Road, and Sabah Pan Borneo Highway Phase 1A.
As of March 12, the group is working on 42 ongoing projects with a total contract value of RM70.5 million, of which RM49.9 million remains unbilled. The company is also actively bidding for work on Sabah Pan Borneo Highway Phase 1B and the Sarawak-Sabah Link Road.
The company reported a net profit of RM8.49 million on revenue of RM68.3 million for FY2024.
Under the public issue, 12.4 million shares are allocated to the Malaysian public, 6.2 million shares to eligible applicants via pink forms, and 13.7 million shares to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
M&A Securities is acting as the principal adviser, sponsor, underwriter, and placement agent for the IPO.