Placement will enable Ingenuity to expand IT ops

KUALA LUMPUR: Ingenuity Consolidated Bhd’s proposed private placement, which is expected to raise RM17.4mil, will allow the information technology (IT) firm to continue to expand its business, said its executive director Chin Boon Long.

“Our business is a high cashflow business. We need a lot of money to grow,” Chin said after a shareholder’s meeting, adding that the shares would be placed out to “several high net-worth” individuals.

At the meeting, the company proposed the private placement, representing up to 30% of its issued and paid-up capital.

Ingenuity, which made a net loss of RM985,000 on revenue of some RM143.7mil in its latest quarter, has businesses in four main areas – software solutions, system integration and services, IT hardware and software distribution and services, as well as telecommunications.

Chin became a sensation of sorts back in August when little-known Ninetology Marketing Sdn Bhd, its business partner then, offered to buy a 35% stake in Ingenuity. Of the 35%, Chin held the largest block at 29%.

While the offer was reportedly extremely attractive at 55 sen per share, Chin refused the offer which would have made him RM90mil richer, causing the offer to fall through.

In all of this, Ingenuity stock surged to a multi-year high of 51 sen. It closed at 9 sen yesterday.

Chin had reportedly been called in by Bursa Malaysia for a meeting which had focused on the offer by Ninetology – the trigger for the erratic performance in the company’s share price during that period.

Chin insisted yesterday that “all this is water under the bridge.”

“My stake is not for sale,” he said.