Genetec pares gain, retreats to below RM20 on profit taking

Genetec pares gain, retreats to below RM20 on profit taking
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KUALA LUMPUR (July 28): Shares in Genetec Technology Bhd fell as much as RM1 today on profit taking, making it the biggest decliner on Bursa Malaysia after hitting a new high of RM20.40 per share the day before.

At 5pm, the counter closed down 98 sen or 4.8% lower at RM19.42. Some 575,800 shares were traded, lower than the 60-day average volume of 815,080 shares.

Shares in the automated industrial system provider have risen by more than five times in the two months of June and July from RM3.70 on May 21 as investors positioned themselves amid the company’s growth story in the electric vehicle (EV) space.

In the period, the share price run prompted the conversion of 580,300 ESOS (employee share option scheme) units at an issue price of RM1.37 per share — representing a gain of 1,327% — to bring its total issued share capital to 50.86 million shares by tomorrow (July 29), the company’s filing showed.

Despite the spike, the group’s largest shareholder Chen Khai Voon continued to nibble on Genetec shares until yesterday (July 27). In June and July so far, Chen has upped his stake by 2.1 million shares in the open market, raising his direct and indirect stake to a total of 9.95 million shares or 19.56%.

At its latest close, Genetec had a market capitalisation of RM983.07 million.

Tan Choe Choe