KUALA LUMPUR: Industrial automated equipment developer Genetec Technology Bhd
plans to undertake a private placement of up to 10 per cent of its shares to raise up to RM154.8 million.
Under the maximum scenario, assuming the placement shares are valued at RM2.16 per share, the group intends to utilise RM94,000 of the proceeds for the expansion of manufacturing facilities, working capital requirements (RM57,800) and the estimated expenses in relation to the exercise (RM3,000).
"The expansion plan (is) particularly on improving and upgrading manufacturing facilities for the automated industrial systems and equipment, and provision of value-added services for customers in the electric vehicle (EV) and energy storage (ES) industries.
"The group’s plans are strategic and in keeping with the favourable prospects of the EV and ES industries in geographical markets that the group supplies to,” Genetec said in a filing with Bursa Malaysia today.
The group also said that with the implementation of the business expansion plan, its management estimated that the production capacity of its manufacturing facilities would increase to approximately 1.5 times of its current production capacity.
Going forward, the group expects enormous room for growth in the EV and ES segments by leveraging favourable policies in various countries and seizing the opportunities for post-pandemic economic recovery.
The EV and ES market is expected to be a key growth driver for the group as an increasing wave of electrification boosts demand for EV, ES and related products, it added. - Bernama
