Fibon to boost exports

 

FIBON Bhd, a formulator of advanced composite materials and manufacturer of electrical insulators, aims to boost ex-ports to Australia, Europe and the Middle East.

Group chief executive officer Eddie Pang Fok Seng said that RM1.2 million of the proceeds raised from its initial public offering (IPO) will be used to set up sales offices in Australia, the United Arab Emirates and the UK.

"We plan to set up sales offices in these three areas within three years," he told reporters after Fibon's listing debut in Kuala Lumpur yesterday.

Pang said Fibon's overseas business contributes 83 per cent to group revenue and is expected to increase as the group widens its market reach.

"We are more focused overseas, which is many times bigger than the market here. But we are also taking care of the Malaysian market," he said.

Pang also said that Fibon will use another RM9.14 million of its IPO proceeds for research and development, purchase of machinery and working capital.

"This will enable the company to increase its presence in the international market, further develop new products and enhance existing products, increase its capacity and efficiency, and spur future expansion."

In the financial year ended May 31 2008, Fibon recorded a consolidated net profit of RM7.85 million, up 86.4 per cent from RM4.21 million in the previous year.

Fibon's share price closed at 80 sen, down 4.5 sen from its IPO price.