Gulf Pharmaceutical Industries, Julphar, has issued subscription rights to its shareholders with a total value of 500 million dirhams.
According to the newspaper, the company said in a statement, that the new issue comes within the framework of restructuring its capital, which included reducing the capital by 503 million dirhams as a first step, Julphar is offering 500 million new shares, with a par value of 1 dirham per share.
The new shares that will be offered to the current shareholders of the company provide investors with the same rights, including the right to obtain any future profits as the current shares. The subscription period will begin on June 29, 2020 and end on July 12, 2020.
The issuance of the rights to the subscription will enhance the company's capital position, improve its debt profile, and provide financial support for the success of the medium-term growth plan.
Commenting on the issuance of the subscription rights, Sheikh Saqr bin Humaid Al Qasimi, Chairman of Julphar, said: Offering the subscription rights is an essential component of the transformation plan, which I trust will support our efforts. In financing the growth program for the coming years.
He added: On this occasion, I thank our shareholders for their confidence in our ability to enhance the performance of the company, either from an operational or financial point of view. The foundations of our work are solid and we have the expertise, capabilities and resources to explore further growth potential in our major markets.
It should be noted that the capital structure and conditions for the issuance of subscription rights were approved by Julphar’s Board of Directors and its shareholders during the annual general assembly of the company that was held last April. The rights issue was also approved by the Emirates Securities and Commodities Authority.
For his part, Dr. Essam Farouk, CEO of the company said: During the past few months, we have accelerated the transformation journey with the aim of regaining the leadership position of Julphar in the MENA region .
Wadda: This 500 million dirham issue of rights issue is a central step in our strategy based on our core competencies to strengthen our budget and invest in sustainable growth opportunities, in addition to creating sustainable value. To shareholders. We are currently working on several strategic initiatives to achieve a positive position in terms of providing liquidity and returning the company to profitability.
In addition to strengthening the financial and budget structure, the additional capital that will be invested now will contribute to the expansion of Julphar's operations in key markets, including Saudi Arabia, Iraq and Egypt. / p> ...
