Karachi September 26 2023: Agha Steel Limited to issue preference shares of PKR 1 billion to its existing shareholders to strengthen and capitalize the Company to support Company’s financial stability and long-term growth objectives, according to company filing to the exchange.
Company’s profitability reduced to half in fiscal year 2023 compared to previous year.
Board of Directors of Agha Steel approved issuance of 100,000,000 (One Hundred Million) preference shares, with differential rights and privileges, having face value of PKR 10/- (Pak Rupees Ten) each (the “Preference Shares” ) to certain existing shareholders and directors of the Company namely Mr. Raza Iqbal Agha and Mr. Hussain Iqbal Agha, and certain strategic investors namely Ms. Natasha Iqbal, Mr. Saad Iqbal and Mr. Danish Iqbal who have offered to subscribe to the Preference Shares, at a price of PI(R 10/- (Pak Rupees Ten) each, aggregating up to PKR (1,000,000,000/- (pak Rupees One Billion), other than by way of right issue for cash consideration, pursuant to Sections S8 and 83(1)(b) of the Companies Act, 2017 and other applicable laws, as permitted under the Articles of Association of the Company (the “Direct Issue”).
The Preference Shares intended to be issued shall have the following rights, privileges, terms and conditions:
(i) Unlisted;
(ii) Callable after 3 (three) years on a cumulative basis;
(iii) Non-convertible;
(iv) Non-voting;
(v) Preferential dividend calculated at the rate of 6 month KIBOR + 0.5% per annum, shall be paid in priority to ordinary shareholders; and
(vi) Preference over ordinary shares in the event of liquidation / winding up of the Company.
The funds received by the Company from the Direct Issue shall be utilized to strengthen and capitalize the Company to support Company’s financial stability and long-term growth objectives such as expanding operations, funding new projects, reducing debt, or investing in new opportunities, with the intention of obtaining tax credits under the applicable laws.
