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ACE Up Its Sleeve? Fibromat’s IPO Sows Seeds for Growth, Despite Rocky Start

Masum Ali Published Apr 02, 2026, 02:29 PM Updated Sep 18, 2026, 11:00 AM

Fibromat (M) Bhd, Malaysia's premier geotechnical solutions company, has successfully migrated from the LEAP Market to Bursa Malaysia's ACE Market, raising RM17.8 million in new capital. The firm, which has earned a reputation for its soil stability and erosion control products, plans to use these funds to increase production capacity, increase in-house capabilities, and boost its standing in mega infra projects-albeit amid a lackluster market debut.

IPO Launch and Market Performance

Fibromat listed on the ACE Market on May 8, 2025, with shares opening 16% off the IPO price of 55 sen a share, in line with overall market weakness and investor wariness.
The stock later settled at 46.5 sen, with more than 11 million shares changing hands in early trade. Market capitalization was around RM115 million following the debut.
The IPO collected RM31.4 million in total, with RM17.8 million to the company and RM13.6 million from a secondary placement by Managing Director Ng Kian Boon.

Utilisation of IPO Proceeds

RM7.6 million will be used to purchase new machinery, such as two jute-based erosion control blanket stitching machines and four dust collectors, to be installed at the Rasa, Selangor factory.
RM3.2 million is earmarked to establish an in-house prefabricated vertical drain (PVD) installation team and acquire five hydraulic excavators, boosting Fibromat's ground improvement capacity.
The balance will be used for working capital and listing costs.

Strategic Expansion and Project Pipeline

Fibromat is actively tendering for large infrastructure projects, such as Phase 1B of the Sabah Pan Borneo Highway and the Sarawak-Sabah Link Road, and state road maintenance contracts.
Some of the company's prominent previous projects are the West Coast Expressway and Sarawak Second Trunk Road.
It has plans to extend its market base in East Malaysia, specifically in Sabah and Sarawak.

Growth Outlook and Industry Position

Fibromat targets 20% year-on-year profit growth, leveraging increased demand for environmentally friendly erosion control solutions in response to heightened environmental awareness.
The firm is still the leading fully local provider in its market niche, focused on green, sustainable engineering solutions.
Management believes that continued improvement in performance and increased awareness among the public will drive investor confidence in the long term despite the poor start.

Risks and Challenges

The firm has no long-term contracts, so revenue is project-based dependent.
Investor mood for ACE Market IPOs has been largely cautious, with the eight listings since March all ending below their issue prices on the first day of trading.

Sources: The Edge Markets, ELC Media Malaysia (YouTube), The Exchange Asia, The Star, Moomoo IPO Factsheet, The Sun Daily

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