Penang:GB Bond Holdings Bhd anticipates a significant boost in its adhesive production capacity by 30-35% with the opening of a new factory in Penang. This development comes as the company seeks to expand its footprint in the water-based industrial adhesives and sealants market.

According to BERNAMA News Agency, Malacca Securities Sdn Bhd's senior vice-president of corporate finance, Darren Koh Chong Wooi, noted that the company's current production facilities are operating at just over 70% capacity. He expressed optimism about the company's expansion into Vietnam, expecting gradual growth in business opportunities in the market.

Koh also projected that demand is likely to increase over the next two to three years, which would lead to higher utilization of the newly expanded capacity. He shared these insights during a press conference following the company's listing ceremony on the ACE Market of Bursa Malaysia, where GB Bond debuted at 25.5 sen, slightly above its IPO price.

GB Bond has successfully raised RM16.08 million from its public issue. The company plans to allocate RM5.50 million of these funds to rent a new 40,000 sq ft factory near its Bukit Panchor headquarters in Penang and to purchase new production machinery. Additionally, RM0.90 million will be spent on product formulation equipment to enhance the group's testing and analytical capabilities for developing customized adhesives.

Furthermore, RM3.50 million will be directed towards establishing and supporting a local sales office in Vietnam, which is scheduled to open within six months post-listing. Malacca Securities served as the principal adviser, sponsor, underwriter, and placement agent for GB Bond's IPO.