Pakistan Oxygen seeks new funding totaling Rs. 749.84 million
ISLAMABAD: Pakistan Oxygen Limited (POL), a well-known producer of medicinal and industrial gases, has made the decision to offer Right shares to its current owners in an effort to obtain new funding worth Rs749.84 million. This action is a result of the company’s commitment to increasing profitability through the maintenance of critical plant and machinery and its growing requirement for working capital.
The company secretary, Mazhar Iqbal, announced in a notification to the Pakistan Stock Exchange (PSX) that the Right shares will be given to POL’s shareholders at a ratio of about 18.96% for every 100 Ordinary Shares, priced at Rs54 per Share.
Surprisingly, the Rs54 offer provides a significant 25% discount over the current market price while still representing a premium of Rs44 per share. Following this disclosure, the company’s stock price had a modest decline of 3.61%, ending the day’s trading at Rs69.69 on the PSX with a volume of 49,400 shares.
Iqbal gave an explanation of the reasoning, saying, “The purpose of the Right issue is to meet increased working capital requirements of the company and maintenance of plant and machinery in order to enhance profitability and, consequently, returns to the shareholders.
Published in EDP BLOGS on September 5,2023.
