Karachi January 17 2022: Pakistan Stock Exchange (PSX) seeks clarification from M/s. Modaraba Al-Mali (MODAM) regarding substantial decreased in price / volume of its certificates during the last three months, for information of all market participants.
MODAM price declined by 63.1 percent in a period of last three months from PKR 24.39 on 21st September 2021 to PKR 9.00 on closing of 17th January 2022.
MODAM had planned right issue to finance new business ventures. Board of Directors of Modaraba has announced 331 percent Right Issue at price of PKR 10 per share with targeted Right proceeds of PKR 610 million in meeting of 13th September 2021. Out of these proceeds, PKR 500 million will be utilized in chemical business, PKR 100 million in setting up IPO Support Fund, PKR 100 million through underwriting and Business Revival Activities, cumulating into funds requirement of PKR 700 million. While the remaining PKR 90 million will be generated through internal cash generation.
MODAM is currently engaged in the business of Leasing/Ijarah Murabaha, Musharaka Financing and Operations of gas stations. Management of the Modaraba has decided to change the business of the modaraba by discontinuing of existing businesses and Repositioning into New Businesses.
Discontinuance of existing business include discontinuance of lending business (in Ijarah, Murabah, Musharaka and any other mode of Financing), efforts will be made for the recovery of the outstanding balances; disposal of property/business of Gas Stations and Disposal of leasehold offices/ premises in Karachi.
Repositioning into new businesses includes Launching IPO support Fund; Refocusing the business of Modaraba to Venture Capital; underwriting and Business Revival Activities; Strategic Equity Investments in Financial Services entity and Investment in Chemical business.
Modaraba is repositioning itself into manufacturing (chemical business), services (under writing, financial consultancy and financial services), venture capital and technology business. These investments will either be taken directly in the Modaraba or as a strategic equity investments in other legal entities, provided they are Shariah Compliant. Modaraba shall seek collaboration and technical partners, if required, to implement its repositioning/diversification stratagem.
