PETALING JAYA: Fibromat (M) Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd for its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
M&A Securities will underwrite 18.6 million new shares made available to the Malaysian public and eligible parties
under pink form allocations.
Fibromat managing director and CEO Ng Kian Boon said the signing of the underwriting agreement with M&A Securities not only reinforces their confidence but also marks a step forward in its transfer from the LEAP Market to become an ACE Market-listed company.
“This comes at an opportune time as we are ready to take advantage of the vast opportunities and vibrancy in Malaysia’s infrastructure construction and property development industry.
“Our group’s geotechnical solutions are used in a diverse range of project types, such as projects for residential and commercial development, infrastructure development, land reclamation, road construction, railway construction, soil stabilisation, landscaping, and river and coastal protection,“ he said in a statement.
M&A Securities is Fibromat’s principal adviser, sponsor, sole underwriter and sole placement agent for the company’s listing transfer from the LEAP Market to the ACE Market.
Fibromat was listed on the LEAP Market on May 30, 2019. The group is involved in geotechnical solutions for erosion control and ground improvement, as well as sediment control, filtration, and containment lining.
Fibromat’s IPO involves a public issue of 32.3 million new shares (13% of its enlarged share capital) and the sale of 24.8 million existing shares (10%).
Of the new shares, 12.4 million are open to the Malaysian public, 6.2 million are allocated to eligible parties under pink form allocations, and 13.7 million will be privately placed with Bumiputera investors approved by the Ministry of International Trade and Industry (Miti).
The offer for sale comprises 17.4 million and 7.4 million existing shares will be allocated by way of private placement to identified Bumiputera investors approved by Miti and to selected investors, respectively.
Fibromat targets to list its entire enlarged issued share capital of 248.3 million ordinary shares on the ACE Market by the second quarter of the year.
Proceeds from the IPO have been earmarked for the purchase of machinery and working capital to facilitate the anticipated growth in the group’s operations, according to the company’s draft prospectus. The balance will be used to defray estimated listing expenses.
Fibromat has recorded strong financial growth over the last few years, with revenue increasing from RM45.8 million in financial year ended Dec 31, 2021 (FY21) to RM75.5 million in FY24 and profit after tax growing from RM5.8 million in FY21 to RM10 million in FY24, while gross profit margins improved from 25.8% to 27.4%.
Ng said, “Since the commencement of our business in 1999, we have successfully grown and evolved from a geosynthetics and erosion control-based manufacturing company to a group that provides geotechnical solutions comprising design, manufacturing and installation of geotechnical solutions using geosynthetics, erosion control and biomass products, as well as trading of geosynthetics and erosion control products.”
As of Dec 31, 2024, the group had 40 ongoing projects with a total contract value of RM178.7 million, out of which RM51.7 million remained unbilled .
“With 25 years of experience in the geotechnical solutions industry in Malaysia, our group has developed in-depth understanding and knowledge of local project requirements, industry standards and regulations, and ground and soil conditions throughout Malaysia. This experience has been critical in helping our group secure more projects as well as product orders for the ongoing expansion,“ Ng said.
