KUALA LUMPUR (May 14): Soil erosion control products manufacturer Fibromat (M) Bhd has proposed to transfer its listing from the LEAP Market of Bursa Malaysia to the ACE Market, as it sees the need for larger fundraising exercises from the equity capital market.

As part of the transfer, Fibromat said it will undertake the issuance of new shares to the public and a larger pool of selected investors, for the purpose of complying with the public shareholding spread requirement as well as raising new capital for the company.

"The proposed listing is expected to increase the liquidity and marketability of the shares by allowing a larger pool of investors to engage in the trading of the shares upon the listing on the ACE Market of Bursa Securities," Fibromat said in a filing on Tuesday.

"In addition, the proposed listing will provide the company access to a wider fundraising platform to support its expansion plans and to realise its long-term growth potential," it added.

The transfer of listing will be subject to the approvals being obtained from the company's shareholders, Bursa Malaysia and Securities Commission Malaysia.

Fibromat said M&A Securities has been appointed as the principal adviser and sponsor for the transfer, which is expected to be completed by the second quarter of 2025.

Fibromat was incorporated in 2012 and has been listed on the LEAP Market since May 30, 2019.

The company provides geotechnical solutions for erosion control, ground improvement, as well as sediment control, filtration, and lining. The solutions provided by the group comprise design, manufacturing and installation of geotechnical solutions using geosynthetic and/or biomass products.

In FY2023, Fibromat's profit after tax more than doubled to RM8.49 million from RM3.54 million in the previous year, as revenue rose 42.4% to RM68.3 million from RM47.95 million. The increase in revenue, the group said, was mainly due to the higher revenue recorded from the design and installation services segment and the trading segment.