Gulf Pharmaceutical Industries (Julphar), a pharmaceutical manufacturer based in Ras Al Khaimah, launched its Dh500 million rights issue to improve its capital and debt profile.
As part of its capital restructuring, which included a capital reduction of Dh503 million as an initial step, Julphar offers 500 million new shares with a nominal value of Dh1. Issued to existing shareholders, the new shares will provide investors with the same rights - including the right to receive all future dividends - as existing shares. The subscription period of the shares begins on June 29 and ends on July 12.
First Abu Dhabi bank has been appointed as lead manager and lead receiving bank.
Sheikh Saqer Humaid Al Qasimi, chairman of Julphar, said: "The rights issue is a key component of the transformation plan which I am confident will further help us fuel our growth agenda in the years to come. Our business fundamentals are robust and we have the experience, capabilities and resources to unlock further growth potential in our core markets."
Dr. Essam Farouk, CEO of Julphar, said: "We are working on several strategic initiatives to move us towards a cash positive position and bring Julphar back to profitability."
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