Datasonic Group Berhad (“Datasonic” or “Group”) announced a proposed transformation plan that will see the Group emerge as a leader in physical and digital identity markets with an AI-based and digital-centric identity management ecosystem focusing on data and security, enabling it to deliver complete, secure end-to-end identity and security solutions for governments and enterprises, aligning with Malaysian Government initiatives such as MyDigital ID and the Malaysian Digital Economy Blueprint.

To support the proposed transformation plan, Datasonic intends to make strategic investments that will broaden the Group’s market presence, increase the Group’s portfolio of products and services, and accelerate its internal R&D activities. This is supported by the exercise to raise up to RM554.95 million through the bonus issue of up to 1.55 billion warrants on the basis of one warrant for every two shares held by shareholders.

“The transformation of our Group will align our vision with the growing demands of a digital-first world,” said Datuk Hanifah Noordin, Executive Deputy Chairman & Chief Executive Officer of Datasonic Group Berhad. “By leveraging next-generation technologies such as AI, we are positioning ourselves to play a key role in national digital transformation initiatives such as MyDigital ID, ensuring we remain at the forefront of delivering value to our stakeholders and supporting Malaysia’s digital economy aspirations.

“The planned transformation will leverage our stellar operating record and expanding range of capabilities to significantly improve the Group’s growth prospects and create a more competitive, resilient organisation. Ultimately, it will also provide a platform to capitalise on growing demand for digitalisation among international governments, as well as the Group’s expansion into the commercial sector, unlocking new market opportunities in Malaysia and globally.”

The first step in the transformation of the Group is the proposed acquisition of a 51% equity stake in Innov8tif Holdings Sdn Bhd (“Innov8tif”), a pioneer in AI-driven digital identity assurance and customer onboarding solutions, for RM40 million.  Innov8tif’s technologies, including e-KYC, liveness facial recognition, document authentication, and fraud detection, have been delivered across a broad portfolio of customers across ASEAN countries including public-listed companies, banks and credit bureaus.

As a result, the planned acquisition will give the Group immediate access and penetration of new markets in banking, telecommunications, and credit reporting. It also positions the Group to secure new projects related to integrated identity verification, biometric security, and digital onboarding services for enterprises and governments.

As part of the proposed transformation plan, the Group has redesignated Independent Non-Executive Director Datuk Puvanesan Subenthiran as Executive Director with immediate effect. Datuk Puvanesan is the Group Chief Executive Officer and co-founder of Privasia Technology Berhad, an information technology company listed on Bursa Malaysia. Datuk Puvanesan has over 25 years of experience in strategic planning, mergers and acquisitions, and will oversee the Group’s technology strategy.

In line with the planned transformation of the Group, Datasonic has also proposed that the company’s name be changed to “NexG Berhad”. This name change will reflect the Group’s intention to be a leader in the integration of next-generation technologies, such as AI, across government and commercial applications.

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