Kuala Lumpur: Fibromat (M) Bhd made a lacklustre debut on Bursa Malaysia’s ACE Market today, following its transfer from the LEAP Market. The geotechnical services firm opened at 46 sen, 16 per cent below its initial public offering (IPO) price of 55 sen per share.

According to BERNAMA News Agency, Fibromat specialises in the design, manufacturing, installation, and trading of geosynthetics and erosion control products. Executive director Wallace Ng Chun Hou expressed the need for the company to strengthen its performance to build investor confidence. He noted that while the company has grown significantly and gained trust from developers and government agencies, there is still room for improvement in the capital market.

Fibromat is the latest ACE Market listing to underperform, with all eight debuts since March closing below their IPO prices on the first day. Wallace suggested that the weak market performance might be due to limited public awareness and understanding of the company’s specialised work. He highlighted the importance of raising awareness to better reflect the company’s value in the capital market.

Meanwhile, Managing Director and Chief Executive Officer Ng Kian Boon stated that the IPO raised RM17.8 million in proceeds. The funds will be used to purchase new machinery, including jute-based erosion control blanket stitching machines and dust collectors, to expand production at their Rasa, Selangor factory. The company also plans to enhance its in-house capabilities by setting up a prefabricated vertical drain installation team and acquiring hydraulic excavators.

Fibromat has been involved in notable projects such as the West Coast Expressway, the Sarawak Second Trunk Road, and Phase 1A of the Sabah Pan Borneo Highway. The company is actively bidding for contracts under Phase 1B of the Sabah Pan Borneo Highway and the Sarawak-Sabah Link Road.