KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Fibromat Bhd, a company specializing in geotechnical services and erosion-control products, has filed for an initial public offering (IPO) as part of its listing transfer from the Leap Market to the ACE Market of Bursa Malaysia. The IPO aims to raise fresh funds following the depletion of capital from its previous Leap Market listing in May 2019.
Fibromat plans to use the IPO proceeds to acquire additional machinery to expand its operational capacity and support anticipated growth. The company will invest in new stitching machines for its Rasa factory, which will more than double its production capacity to 101,340 rolls of erosion-control blankets annually. Additionally, hydraulic excavators will be acquired to bolster its in-house capabilities, particularly for the installation of prefabricated vertical drains (PVD). A dust collector to be connected to the stitching machines is also on the company's shopping list.
Fibromat, based in Selangor, specializes in erosion control, ground improvement, sediment control, filtration, and containment lining. The company reported a net profit of RM8.49 million on revenue of RM68.3 million last year.
The proposed IPO will involve a public issue of 32.28 million new shares and an offer for sale of 24.83 million existing shares, with pricing to be determined later. Of the new shares, 12.41 million will be allocated to the Malaysian public and 6.21 million to eligible persons, while 13.66 million shares will be set aside for Bumiputera investors through private placement.
Managing Director Ng Kian Boon will see his stake in the company reduced from just under 85% to 63.7%. His sons, Ng Chun Hou and Ng Chun Yew, serve as Fibromat’s executive director and senior operations manager, respectively.
M&A Securities is serving as the adviser, sponsor, underwriter, and placement agent for the IPO.
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