PETALING JAYA: Geotechnical solutions and specialist engineering company Fibromat (M) Bhd aims to raise RM17.8 million to fund the purchase of new machinery in conjunction with the transfer of the company’s listing to the ACE Market of Bursa Malaysia.
Fibromat was listed on the LEAP Market on May 30, 2019.
Of the total proceeds, RM7.6 million (42.6%) will be used for the purchase of machinery, RM6.7 million (37.8%) for working capital and RM3.5 million (19.6%) for listing expenses.
Fibromat’s managing director and CEO Ng Kian Boon said the company plans to utilise the initial public offering (IPO) proceeds to purchase new machines to be installed in its factory at Rasa, Selangor.
“We intend to expand our offering of erosion control blankets by purchasing two units of stitching machines that can produce jute-based erosion control blankets and four units of multifilter bag dust collectors with ducting, which can be connected to the erosion control blanket stitching machine,“ he said at the company’s IPO prospectus launch today.
Ng said Fibromat also intends to expand its in-house capabilities to include the installation of prefabricated vertical drains (PVD) – geosynthetics that are installed in soft ground for ground improvement purposes – by setting up a PVD installation team and purchasing five units of hydraulic excavators.
Furthermore, the company intends to expand its market presence in East Malaysia, where it first ventured into in 2017.
“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.
‘We also actively bid for multiple work packages for the maintenance of state roads and infrastructure worth RM5.4 billion under Budget 2024,“ he shared.
Based on the enlarged share capital of 248.3 million ordinary shares and IPO price of 55 sen per share, Fibromat is expected to have a market capitalisation of RM136.6 million.
Fibromat’s IPO encompasses a public issue of 32.3 million new shares, representing 13% of its enlarged issued share capital as well as an offer for sale of 24.8 million existing shares, representing 10% of its enlarged share capital.
The public issue comprises 12.4 million new shares made available to Malaysians, 6.2 million new shares made available to the eligible parties under pink form allocations and 13.7 million new shares that will be allocated by way of private placement to identified Bumiputera investors approved by the Ministry of Investment, 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.
Based on a report by Independent Market Researcher, Fibromat captured a market share of 1.11% in 2024, based on the revenue contribution of RM36.8 million from the company’s design and installation of geotechnical solutions segments for FY24 when compared to the Malaysian geotechnical solutions industry size of RM3.3 billion in 2024.
M&A Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for Fibromat’s IPO.
