Karachi June 22 2021: Macter International Limited is eyeing to raise more than PKR1 billion through right issue, as per notice issued at Pakistan Stock Exchange.
Board of Directors of Macter International Limited in their meeting held today, have decided to increase the paid-up share capital of the Company by issue of a further 6,666,667 (Six Million Six Hundred Sixty Six Thousand Six Hundred Sixty Seven) ordinary shares, having face value of PKR 10/- (Pak Rupees Ten) each, as Right Shares, to be offered to the members in proportion of 17.03 Right Shares for every 100 ordinary shares held i.e. 17.03 percent, at a price of PKR 165/- (Pak Rupees One Hundred Sixty Five) per Right Share (inclusive of a premium of PKR 155/- (Pak Rupees One Hundred Fifty Five) per Right Share).
The purpose of the Right Issue is primarily to reduce reliance on bank borrowings; meet increased working capital requirements, and to finance new launches of medicine and advance therapies to enhance the profitability of the Company and, consequentially, the returns to the shareholders.
Mr. Asif Misbah, Chief Executive Officer
The subscription amount from the Right Issue will enhance the Company’s ability to smoothly and effectively implement its business plan and to make available the required liquidity in efficiently meeting its working capital requirements. Effective implementation of the business plan is expected to positively impact the profitability of the Company, which in consequence would benefit its shareholders.
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The substantial shareholder and directors of the Company have confirmed that they shall subscribe to (or arrange the subscription of) their respective right entitlements, while the balance portion of the Right Issue shall be fully underwritten as per requirements under the applicable regulations. Normal risks associated with the business will remain; however, the Company is well placed in the market with proven track record which will help to mitigate such risk factors.
Sales are likely to pick up with normalization of patients flows as the intensity of third wave of COVID 19 reduces. Annual inflation linked price increase along with operational efficiencies are expected to support financial performance.
The right issue is being carried out at a valuation (which is at a premium to the par value of shares) in view of company's high growth in historical periods, competitive position within the industry as well as current and forecast financial performance of the Company.
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