GB Bond to boost adhesive production capacity by 35% with new Penang factory

Thursday 01 Oct 2026

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KUALA LUMPUR (Oct 1): Newly listed GB Bond Holdings Bhd (KL:GBBOND) plans to increase its annual industrial adhesive production capacity by about 35% to 31,971.3 tonnes as it sets up a new factory near its headquarters in Bukit Panchor, Penang.

The industrial adhesive maker has allocated RM5.5 million from its initial public offering (IPO) proceeds to rent the approximately 40,000 sq ft factory and purchase new production machinery.

The expansion will include four additional mixing and blending machines, alongside two additional production lines for sealants.

GB Bond's existing adhesive production capacity is currently about 70% utilised, leaving some room to accommodate demand before the additional capacity comes onstream, said Darren Koh Chong Woi, senior vice-president of corporate finance at Malacca Securities.

“We expect that over time, over the next two to three years, this demand is going to increase, and hence, the capacity will be more utilised,” Koh told reporters following GB Bond's listing ceremony on Thursday.

Part of that demand is expected to come from overseas markets, including Vietnam, where GB Bond is establishing a sales office as part of its post-listing expansion.

The group has allocated RM3.5 million from its IPO proceeds to establish the Vietnam office within six months of listing. It plans to pursue existing and potential customers there, particularly in the woodworking, paper and packaging industries.

Chief financial officer Nicole Eng Pek Yui said Vietnam's contribution to group revenue is expected to grow gradually, with the company targeting a contribution of at least 9%, depending on the pace of its business expansion.

Vietnam was GB Bond's second-largest market in the financial year ended Dec 31, 2025, accounting for 5.36% of revenue, compared with 90.93% from Malaysia.

Malacca Securities co-head of corporate finance Jason Chan: GB Bond is also looking beyond Vietnam for overseas growth.

GB Bond is also looking beyond Vietnam for overseas growth, with the number of countries it serves increasing, said Jason Chan, co-head of corporate finance at Malacca Securities.

“If you look at the prior years, the number of countries that we actually covered has increased,” Chan said, adding that the group had also secured new business in Bangladesh.

Meanwhile, GB Bond has been able to pass higher raw material costs on to customers, helping it maintain its margins despite volatility in petrochemical-based inputs, Chan said.

“Based on track records, they have been successfully able to pass on the increase in raw material prices to consumers,” he said.

GB Bond raised RM16.08 million from its IPO. The company made its ACE Market debut on Thursday, opening at 25.5 sen, a 2% premium to its IPO price of 25 sen.

As at 10.50am, the stock had slipped to 23 sen, down two sen or 8% from its IPO price, valuing the company at about RM94.83 million.

Edited ByIsabelle Francis

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