Despite scaling back its original funding target, China-based foam producer FoaMasters International, which makes both foams, including environmentally friendly ones, and ‘finished products’, has debuted on AIM with a US$64 million (£31.5 million) valuation.

Brought to market by Chinese IPO specialists Hanson Westhouse, the company established since the 1960’s and boasting factories in China and Vietnam, produces high quality, flexible, ‘polyurethane-based’ foams for the bedding, shoe and furniture industries.

Significantly, it has developed a range of environmentally-friendly foams, including ‘CFC’ free and ‘memory’ foam, made from polyurethane with extra chemicals which adds to its viscosity level, thereby increasing density, which can be used for ‘energy absorbent’ applications as well as the bedding industry.

FoaMasters appears to be growing like topsy, with sales for the first half of 2007 being £22 million, which compares with £35.5 million for the whole of 2006, with the bulk of sales coming from the sale of raw foam which made into bedding, furniture and footwear by domestic manufacturers, then exported to the likes of Wal-Mart, Nike and IKEA. Finished products are sold by FoaMasters to retailers who then market them under their own brands.

Domestic demand foam demand is growing, whilst appetite for specialist foams from Europe and America, where there is a greater requirement for exports to meet strict environmental and safety specifications, is said to be high. With its original spending plans pulled back, forecasts have been curtailed, but investors might still expect impressive profits growth to £4.2 million for December 2007, on sales of just under £50 million.

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