Fibromat (M) Berhad Experiences Initial Dip on ACE Market Debut

KUALA LUMPUR, May 8, 2025 — Fibromat (M) Bhd, a Malaysian company specializing in geotechnical solutions, experienced a significant drop in its share price on its first day of trading on the ACE Market. The company, which transitioned from the LEAP Market, saw its shares fall by 16% amid a weak market environment.

Shares of Fibromat opened at 46 sen, down from its initial public offering (IPO) price of 55 sen per share. The stock reached a low of 41 sen before recovering slightly to 46.5 sen by 9:15 am. Over 11 million shares were traded during this period. At the last recorded price, Fibromat’s market capitalization stood at RM115 million.

The company’s transition to the ACE Market was marked by a challenging start, with the stock initially dropping by as much as 25% from its IPO price. Despite the initial setback, Fibromat’s management remains focused on leveraging its core competencies in erosion control, ground improvement, and sediment control solutions.

Fibromat’s IPO aimed to raise RM1.78 million, which will be used to purchase machinery, support operational capital, and cover listing expenses. The company reported a net profit of RM1.28 million for the first quarter of the 2025 financial year, with revenue reaching RM13.35 million, reflecting a net profit margin of 10%.

Fibromat’s competitive advantages include its extensive experience in providing geotechnical solutions for various projects, including residential, commercial, infrastructure, and environmental engineering. The company has secured 249 contracts between the fiscal years 2021 and 2024 and has successfully exported its products to countries such as Singapore, South Korea, India, and the UK.

Looking ahead, Fibromat plans to expand its product offerings by introducing biodegradable erosion control mats made from jute fabric. The company also intends to enhance its manufacturing capacity by acquiring new equipment, including two new mat seaming machines and four multi-bag dust collectors, to improve production output and air quality.

Additionally, Fibromat aims to strengthen its internal capabilities by installing precast vertical drainage boards (PVD) and establishing a dedicated team. This initiative involves purchasing five hydraulic excavators to reduce reliance on subcontractors, improve cost control, and enhance operational efficiency.

Fibromat is also actively expanding its market presence in Malaysia, securing multiple infrastructure-related contracts from 2021 to 2025, focusing on hydraulic spraying, erosion control, and road upgrades.

The company’s transition from the LEAP Market to the ACE Market marks a significant step in its growth strategy, despite the initial market challenges. Fibromat’s management remains committed to capitalizing on its strengths and expanding its market reach in the geotechnical solutions sector.