KUALA LUMPUR: Fibromat (M) Bhd
has proposed a private placement of up to 24.83 million new shares, representing up to 10% of its issued share capital, to raise about RM17.4mil.
In a filing with Bursa Malaysia, the integrated geotechnical engineering solutions provider said the shares would be placed with independent third-party investors at an issue price to be determined later.
For illustrative purposes, the placement shares are assumed to be issued at 70 sen each, representing a discount of about 9.5% to the five-day volume-weighted average market price of 77.39 sen up to July 10, 2026.
Based on the indicative issue price, the proposed private placement will raise gross proceeds of approximately RM17.4mil.
Fibromat intends to allocate RM9.24mil of the proceeds to purchase additional machinery, including excavators, tipper trucks, bulldozers and compactors.
Another RM7.63mil will be used as working capital for its projects, mainly for the purchase of materials and supplies and payments to subcontractors, while RM505,000 will cover expenses related to the placement.
The company said the additional machinery would increase its operating capacity and enable it to undertake more and larger-scale geotechnical projects concurrently.
As at July 10, Fibromat had an unbilled order book of about RM497mil and an active tender book of RM649.8mil.
The proposed placement may be implemented in several tranches within six months of receiving Bursa Malaysia’s approval.
Upon completion, Fibromat’s issued share capital could increase to 273.1 million shares from 248.28 million shares currently.
The exercise is expected to improve the group’s net assets per share to 38 sen from 35 sen and reduce its gearing to 0.35 times from 0.41 times.
However, Fibromat said its earnings per share would be diluted following the increase in the number of shares issued.
The proposed private placement is expected to be completed by the fourth quarter of 2026, subject to regulatory approvals.
