KUALA LUMPUR (July 21): Inix Technologies Holdings Bhd has proposed to undertake a private placement of 46.66 million new shares in the company to diversify into the glove business.

In a filing with Bursa Malaysia today, Inix said the private placement is expected to raise gross proceeds of up to RM4.48 million, based on the illustrative issue price of 9.6 sen per placement share.

Due to the challenges in the existing business in the information technology and communications technology segments, the company said it is planning to diversify its income stream and reduce dependence on its current existing core business.

“The proposed private placement represents not more than 10% of the existing number of shares in the company.

“The proposed diversification includes manufacturing, marketing and trading of gloves,” it said.

As at July 19, 2021, the issued share capital of Inix is RM64.47 million comprising 466.6 million Inix shares.

"The issue price of placement shares shall be determined, fixed and announced by the board at a later date after receipt of approval from Bursa Securities for the proposed private placement.

“The proceeds would be utilised for an expansion of our glove business amounting to RM4.249 million within eight months, while the remaining is on the expenses for the proposals,” it said.

The group said it plans to manufacture latex gloves for domestic consumption as a start and may venture into other types of gloves and/or export markets in the future.

“This is subject to the demand for other types of gloves, licensing requirements and/or availability of manufacturing lines for the production of new type of gloves,” it said.

“Premised on this, the board is optimistic about the future prospects of the group’s glove business,” it said.