Fibromat’s ACE Market IPO: Strengthening ESG Roots While Driving Geotechnical Innovation

Fibromat’s ACE Market IPO: Strengthening ESG Roots While Driving Geotechnical InnovationFibromat (M) Bhd, a homegrown pioneer in geotechnical solutions, is set to make its debut on Bursa Malaysia’s ACE Market this May, targeting to raise RM17.8 million via its initial public offering (IPO). More than just a capital-raising exercise, Fibromat’s listing signals a strategic shift toward deepening its environmental, social and governance (ESG) commitments while expanding its role in sustainable infrastructure development.

Priced at 55 sen per share, the IPO reflects the company’s ambition to reinforce both its technical capabilities and eco-conscious operations, especially in erosion control and slope stabilization solutions.

Green Engineering in Action

As part of its ESG strategy, Fibromat will channel RM7.6 million (42.6% of IPO proceeds) into purchasing advanced machinery, including two “erosion control blanket” manufacturing units equipped with dust collectors designed to reduce air pollution and particulate emissions — a significant step towards lowering its carbon footprint at its Rasa factory in Selangor.

The erosion control blankets are central to Fibromat’s nature-based solutions, which help prevent soil erosion, rehabilitate slopes, and restore environmentally sensitive sites. These products are vital for climate-resilient infrastructure, especially in Malaysia’s flood-prone zones and rural developments.

Another five hydraulic excavators will enhance the company’s operational efficiency and support its downstream strategy to grow margins by offering complete geotechnical solutions, from product to implementation.

Pioneering Geotechnical & Sustainable Solutions

Founded with a vision of integrating engineering excellence and ecological stewardship, Fibromat today provides:

Geotechnical engineering services

Including slope stabilization, ground improvement, and erosion protection tailored for both infrastructure and environmental projects.

Geosynthetics trading

Distributing environmentally responsible materials such as geogrids, geotextiles, and drainage composites.

Prefabricated Vertical Drain (PVD) installation

Essential for preloading and accelerating soil consolidation in construction areas, improving ground stability.

These services align closely with the principles of sustainable development — particularly in reducing land degradation and improving long-term resilience of built environments.

Strategic Expansion in East Malaysia

Executive Director Ng Chun Hou revealed that the company is actively bidding for several high-value infrastructure projects, including:

Pan Borneo Sabah Highway Phase 1B (RM15.7 billion)
Sarawak–Sabah Link Road (RM7.4 billion)
State road maintenance under Budget 2024 (RM5.4 billion)

These projects are expected to demand both engineering know-how and adherence to strict ESG and environmental compliance — areas where Fibromat has built a strong track record.

Social & Governance Commitments

On the social and governance fronts, Fibromat emphasizes:

Local employment at its new factory operations
Skills development programs tied to machinery handling and green construction practices
Transparent procurement practices, with the company upholding fair tendering and supplier diversity

Fibromat’s ESG-forward trajectory also aligns with increasing demand from investors and project owners for contractors and suppliers who prioritize sustainability, safety, and corporate responsibility.

IPO Structure and Market Capitalization

Based on an enlarged capital base of 248.3 million shares, Fibromat is poised to debut with a market capitalization of RM136.6 million. The IPO includes:

32.3 million new shares (13%) public issue
12.4 million for the public
6.2 million for eligible parties
13.7 million via private placement to MITI-approved Bumiputera investors
24.8 million existing shares (10%) offered for sale via private placements

Applications close on April 25, 2025, and listing is scheduled for May 8, 2025. M&A Securities Sdn Bhd serves as the principal adviser, sponsor, sole underwriter, and placement agent.

Building a Greener Legacy

Fibromat’s journey from its LEAP Market listing in 2019 to this upcoming ACE Market debut reflects more than financial growth. It symbolizes the rise of Malaysian SMEs driving ESG-focused innovation in engineering — a testament to how “green is good for business”.

As the climate challenges grow more complex, companies like Fibromat will be crucial in bridging sustainable development and infrastructure resilience across Malaysia and Southeast Asia.