G3's largest shareholder cuts stake, now holds 4.77% in company

TheEdge Mon, Jan 22, 2024 08:25pm - 5 months View Original

KUALA LUMPUR (Jan 22): Global Man Capital Sdn Bhd has ceased to be a substantial shareholder in the information and communications technology (ICT) company G3 Global Bhd, following a disposal of 168.67 million shares or 4.47% in the company via off-market trade.

Global Man Capital is linked to Datuk Wan Khalik Wan Muhammad and Datuk Khan Mohd Akram Khan. The sale, in which the buyer is unknown at the time of writing, resulted in Global Man Capital being left with 180 million shares or 4.77% in G3.

The stake was disposed of on Jan 18 in a single block at RM3.88 million or 2.3 sen per share, Bloomberg data showed. The counter closed at three sen on Monday, giving it a market capitalisation of RM94.34 million.

With the disposal, the current largest shareholder in G3 is Datuk Seri Aminul Islam Abdul Nor, who has a 17.84% indirect stake in the company, the bulk of which is held via Greenfield Hills Sdn Bhd (8.54%). Global Man Capital held 14% stake up until September last year, when it disposed of 180 million shares off market.

G3 returned to profitability in 2022, which it attributed partly to the Airport Integrated Security and Safety System (AIS3) contract for  Kuala Lumpur International Airport (KLIA) and klia2 that it won from Malaysia Airports (Sepang) Sdn Bhd.

The contract, which will end in March, was secured by G3 in collaboration with SenseTime — a Hong Kong-listed artificial intelligence software outfit with a market capitalisation of HK$27.78 billion (RM16.8 billion). G3 is currently a “key distributor of SenseTime products in Malaysia”, it said in its 2022 annual report.

The company has no bank borrowings, with net cash of RM34.74 million against total liabilities of RM13.18 million. Total equity stood at RM63.8 million, with accumulated losses of RM63.57 million.

G3 shares have been trading largely range-bound between two sen and three sen for more than a year now, as interest in the counter waned after the penny-stock boom in 2020 due to continued losses incurred by the ICT company, which also sold Covid-19 test kits during the pandemic.

In the nine-month period of FY2023, G3 booked net profit of RM4.4 million or 0.14 sen per share, from losses of RM3.26 million or 0.12 sen loss per share a year ago, as revenue more than tripled to RM35.78 million, from RM11.83 million.

This is attributed to the AIS3 project, as well as higher contribution from its “ICT Division AI Solutions” segment.

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