KUALA LUMPUR: Shares of Fibromat (M) Bhd (KL:FIBRO) slipped 16% in early trading on its first day on Bursa Malaysia’s ACE Market, following its transfer from the LEAP Market, as broader market weakness and cautious investor sentiment continued to weigh on debut listings.
The geotechnical services specialist saw its shares open at 46 sen, below the initial public offering (IPO) price of 55 sen per share. The stock touched an intraday low of 41 sen before stabilising, trading at 46.5 sen as at 9.15am, with over 11 million shares changing hands. At the prevailing price, Fibromat’s market capitalisation stood at approximately RM115 million.
Fibromat becomes the latest in a string of subdued ACE Market debuts. Since March, all eight new listings on the exchange have closed below their respective IPO prices on their first trading day, reflecting investor caution amid challenging market conditions.
Investor appetite for Fibromat’s IPO appeared restrained, with applications only marginally covering the shares on offer. Despite the lacklustre demand, the exercise raised RM31.4 million in total proceeds. Of this, RM17.8 million was channelled to the company, while RM13.6 million was raised via a secondary offering by Managing Director Ng Kian Boon, who pared down his personal stake.
Fibromat remains a family-run enterprise, with Ng’s sons, Ng Chun Hou and Ng Chun Yew, holding key positions as Executive Director and Senior Operations Manager, respectively.
The company previously raised funds through its LEAP Market listing in May 2019, which have since been fully utilised. Proceeds from the current IPO are earmarked for the acquisition of new machinery — including stitching machines and dust collectors — the establishment of an in-house prefabricated vertical drain installation team, and the purchase of five hydraulic excavators. Additional funds will be allocated for working capital requirements and listing-related expenses.
M&A Securities Sdn Bhd acted as the principal adviser, sponsor, underwriter, and placement agent for the IPO.
–The Edge Malaysia
