Kuala Lumpur, May 8 – Fibromat (M) Bhd experienced a disappointing start as it made its debut on Bursa Malaysia's ACE Market, marking a rough transition from its previous listing on the LEAP Market.
The geotechnical services company saw its shares open at 46 sen, below its IPO price of 55 sen. Despite briefly touching a low of 41 sen, Fibromat closed the day at 49.5 sen — a 10% decline on its first trading session. Over 29 million shares changed hands, reflecting active trading but lackluster support.
At market close, Fibromat's valuation stood at RM123 million.
Fibromat's debut continues a concerning trend on the ACE Market. Since March, eight companies have launched IPOs on the platform — all of which ended their first day below listing price. The cautious mood among investors, shaped by a subdued market outlook, appears to have made them highly selective with new entrants.
Even during Fibromat's IPO process, signs of limited enthusiasm emerged. The offering received just enough applications to meet the shares made available, indicating restrained demand.
Despite the lukewarm reception, the IPO raised RM31.4 million in total. Of this, RM17.8 million went to Fibromat itself, while RM13.6 million was generated through the sale of existing shares by managing director Ng Kian Boon.
The company remains under strong family management. Ng's sons, Ng Chun Hou and Ng Chun Yew, hold executive roles — as executive director and senior operations manager respectively.
Proceeds from the IPO are earmarked for several initiatives, including the purchase of industrial equipment (such as stitching machines and dust collectors), the establishment of a dedicated in-house vertical drain installation team, and the acquisition of five hydraulic excavators. Part of the funds will also cover working capital needs and listing-related expenses.
Fibromat had previously raised funds during its 2019 LEAP Market listing, but those resources have since been exhausted.
M&A Securities served as the IPO's principal adviser, sponsor, underwriter, and placement agent.
