ACE Market-listed industrial automation house Genetec Technology Bhd is planning a move to the Main Market of Bursa Securities.

In a bourse filing yesterday, the company proposed a transfer to the Main Market to enhance its credibility, prestige and reputation, and accord the company with greater recognition and support among investors, in particular among larger institutional and foreign investors

It added that the proposed transfer will also pave the way for certain institutional investors which do not have mandates to invest in companies on the ACE Market of Bursa Securities to invest and participate in the growth of the company.

On Feb 15, 2023, Genetec completed a private placement of 68.2 million shares, raising RM178 million in proceeds. As at June 30 2022, 29.25% and 9.54% of the total Genetec shares were held by local institutional and foreign investors respectively. 

Following the private placement, the portion of Genetec shares held by local institutional and foreign investors has increased to 32.44% and 24.77% respectively.

The company added that given its unique position in the growing electric vehicle (EV) and energy storage segment, the proposed transfer will further enhance its ability to grasp the opportunity arising from the growing global trend for environmental, social and governance (ESG) investments to attract more investors who invest based on the ESG criteria.

“The proposed transfer to the Main Market of Bursa Securities, if approved by the relevant authorities, will mark another major milestone in the achievement of Genetec after its listing on the Malaysian Exchange of Securities Dealing and Automated Quotation Market of Bursa Securities (now known as ACE Market of Bursa Securities) on Nov 7, 2005,” it added.

As at Feb 16, 2023, being the latest practicable date prior to the announcement, the issued share capital of Genetec was RM266.21 million comprising 750.16 million shares.

Genetec said it has fulfilled the market capitalisation requirement of at least RM500 million under Paragraph 5.02(b)(i) of the Equity Guidelines. For the period from March 1, 2022, up to Feb 28, 2023, Genetec has recorded a daily market capitalisation of between RM1.11 billion and RM2.1 billion based on the daily volume-weighted average price of its shares of the same period.

Barring any unforeseen circumstances and subject to the required approvals being obtained, Genetec said the proposals are expected to be completed by the third quarter of 2023.

Shares of Genetec gained five sen, or 1.81%, to RM2.81 today, translating to a market capitalisation of RM2.1 billion. — TMR / pic source: Genetec Technology Automation