Julphar rights issue oversubscribed 2.3 times; shares fall

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Published: Wed 15 Jul 2020, 2:57 PM

Last updated: Wed 15 Jul 2020, 8:16 PM

Abu Dhabi-listed Gulf Pharmaceutical Industries (Julphar) on Wednesday said its Dh500 million rights issue was more than two times oversubscribed, totalling Dh1.14 billion.
The net proceeds of the rights issue, which closed on July 12, will be used to implement its growth plans, repay existing loans, and sustain its working capital needs. The rights issue was priced at Dh1 per share.
Its shares on Wednesday fell 4.6 per cent to Dh1.240.
This will also include investments in product development, as well as the further elevation of the stringent quality control processes introduced in 2019.
First Abu Dhabi Bank acted as the lead manager and Matouk Bassiouny & Ibrahim as the legal counsel for the transaction.
"We are delighted at the resounding success of the rights issue after the subscription of over Dh1.1 billion in shares. This represents another major step forward in the company's journey of transformation and growth. With the current expertise and resources at the company, I am confident that we will continue to improve our performance across all areas and deliver sustained shareholder value over the coming years," said Sheikh Saqer Humaid Al Qasimi, chairman of Julphar.
Dr. Essam Farouk, chief executive officer of Julphar, stated that the equity injection will act as a critical growth catalyst.
This year, Julphar also announced the relaunch of over 80 products within Saudi Arabia, Kuwait, Bahrain, and Oman, with initial sales continuing at a brisk pace during Q2.
waheedabbas@khaleejtimes.com

By Staff Report

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