Fibon Bhd ... IPO

Fibon Bhd is the investment holding company of Hexa Analisa Sdn Bhd which was incorporated in 2003. Pang founded the insulation materials production business in 1992 under CPC Polyply. Its clients include Schneider Electric, Siemens and Terasaki Electric Co Ltd.

Fibon Bhd, formulator of advanced composite materials and manufacturer of electrical insulators, is seeking Mesdaq Market listing to expand its overseas market share despite global economic uncertainties.

RM1.18 million of the RM9.14 million gross proceeds would go towards setting up sales offices in Australia, the United Arab Emirates and the United Kingdom over the next three years.

The overseas market contributed about RM11.91 million or 83% of the company’s RM14.31 million revenue in its financial year ended May 31, 2008 (FY08), with Singapore accounting for half the export revenue. Its other markets include Australia, Thailand, Indonesia, South Africa and Vietnam.

Market capitalisation upon listing on Dec 18 2008 is expected to be RM8.33 million.
The group’s pro forma revenue stood at RM14.31 million and net profit of RM7.85 million for FY08. Based on a net earnings per share of 29.06 sen and its offer price of RM2.73, the price earnings multiple amounts to 9.4 times.

Apart from geographical expansion, Fibon Bhd intends to use the proceeds to enhance research and development, purchase new machineries, finance its working capital and to defray listing expenses.

Technology companies would need to upgrade their switchboard systems. Their products are “a necessity for security, not a luxury product”.

Post listing, Pang will hold 25.89% of the company, while his wife Lim Wai Kiew will hold 8.11%. His brother and Fibon’s executive chairman Pang Chee Khiong will hold a 15.12% stake.