DESPITE debuting below its initial public offering (IPO) price, Penang-based customised water-based industrial adhesives, emulsion polymers and sealants maker GB Bond Holdings Bhd has set its sight on growing its market share in Malaysia and Vietnam.
Its post-listing priorities are to develop additional business in Malaysia and Vietnam through manufacturing expansion, closer customer engagement and investment in product formulation.
The stock which initially opened at 25.5 sen or a 2% premium to its IPO price of 25 sen headed southward soon after by giving up 2.5 sen or 10% to 22.5 sen with 58.62 million shares traded at the close of today’s (Oct 1) mid-day trading.
Based on 412.30 million issued shares, its market capitalisation currently stood at RM93 mil.
The group has successfully raised RM16.08 mil from its public issue exercise. To support future order growth, GB Bond has allocated RM5.50 mil from its IPO proceeds to rent a new factory measuring about 40,000 sq ft near its Bukit Panchor headquarters in Penang alongside the purchase of new production machinery.
The group will install four additional mixing and blending machines which are expected to increase its annual industrial adhesive production capacity by 35.3% to 31,971.30 tonnes. The allocation also covers installing two additional sealant production lines.
The management is executing this expansion in advance to account for the lead time required for factory preparation and machinery installation, thus ensuring capacity is ready as the group develops new business with existing and prospective customers.
Expansion plan intact
Alongside the factory expansion, RM900,000 mil is earmarked for product formulation equipment.
This investment will strengthen the group’s testing and analytical capabilities by supporting the development and refinement of customised adhesives tailored to specific industrial applications.
In Vietnam, RM3.50 mil has been allocated towards establishing a local sales office and supporting its operations. The office is intended to be established within six months of listing.
Building on its exports to Vietnam since 2009, the group will pursue previous and potential customers, particularly in woodworking and paper and packaging.
A local team will focus on customer enquiries, sales development and order processing. Third-party shared warehousing arrangements will support delivery coordination.
The expansion plans come against a backdrop of growth in relevant manufacturing sectors. According to the Department of Statistics Malaysia, production in Malaysia’s wood, furniture, paper and printing subsector rose 5.5% year-on-year (yoy)- in July 2026.
In Vietnam, National Statistics Office data showed yoy production growth of 12.7% in furniture manufacturing and 12.2% in wood processing and related products (excluding furniture) during the first eight months of 2026.
“Our next priority is to win more business from existing and new customers. Manufacturing expansion takes time,” commented GB Bond’s managing director Datuk Gooi Ching Koay.
“We need to prepare the space and install the machinery before additional production can begin. Planning ahead gives us time to build those capabilities while developing customer demand.”
Added Gooi: “Raising capacity is only part of the job. We also need to build the orders to support it. As a listed company, our responsibility is to deploy the funds carefully and keep shareholders informed of our progress.”
GB Bond posted revenue of RM28.80 mil during the six months ended June 30, 2026 alongside pre-tax profit of RM6.77 mil and net profit of RM5.19 mil.
As at that date, the group’s cash and bank balances stood at RM13.52 mil against total borrowings of RM9.33 mil, including hire purchase and excluding lease liabilities.
Berjaya Research has recently ascribed a fair value of 36 sen/share or 44% potential upside over GB Bond’s 25 sen IPO price based on a 12.0x target PER (price-to-earnings ratio) pegged to the group’s CY2027F earnings per share (EPS) of 3.0 sen. – Oct 1, 2026
