A key figure in Genetec Technology Bhd, a company involved in the energy storage business catering primarily for electric cars, is the low-profile Chen Khai Voon.

Two to three years ago when battery storage and electric vehicles were market plays, Genetec was touted as a prime beneficiary. Its customers are from the US and Europe. And although the identity of the customers are not known, they are believed to be manufacturers of electric vehicles.

Chen was Genetec’s single largest shareholder with almost 18% interest in June 2021, around the time when the company’s share price hit RM46 — that was how red-hot it was.

Last Friday, in a surprise announcement, Genetec said Chen had disposed of 15 million shares on the open market — his second major disposal in May.

In the first week of the month, Chen had disposed of a total of 17.7 million shares through a married deal and open market sales. Today, he holds only 1.6% direct interest and another 6% indirect interest in the company, meaning his interest has been shaved considerably since 2021, certainly by more than half.

Apart from Chen, Tan Moon Teik, who is an executive director of Genetec, has ceased to be a substantial shareholder following the transfer of a block of shares to his siblings.

Genetec’s share price last Friday was RM2.26. The company undertook a 12-for-one bonus issue in 2021, which diluted its share price.

The wave of disposals has not caused a sharp drop in Genetec’s share price, which means the selling has been absorbed by the market. Based on its 2023 annual report, the company’s shareholders include a long list of funds and institutions.

According to available reports, Genetec’s business fundamentals seem to be intact as it still draws 78% of its business from customers in the US and Europe. That being the case, Chen’s significant paring of his stake comes as a surprise.

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