Julphar armed for Revival; ADX credits right Issue shares worth $136m

Dealing on the rights issue shares will start from the trading session of Tuesday 23rd June 2020.

By Rahul Vaimal, Associate Editor
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Abu Dhabi Securities Exchange (ADX) stated that it has credited the Right Issue share of Gulf Pharmaceutical Industries (Julphar) with ratio 76.31 percent for listed Julphar shareholders as of 18th June 2020, which subsequently got transfers to the respective shareholder’ accounts with brokers, custodians and CSD in the CSD Electronic System.

Transactions on the rights issue shares are expected to start from the trading session on Tuesday 23rd June 2020.

The company could increase its capital under the right issue share from $178 million to $314 million by offering 500 million shares with a nominal value of 1 dirham ($0.27) per share and without an issuance premium.

The increase in capital will be utilized to settle the organization’s current obligations and improve its financial solvency. On the other hand, proceeds will be used to search for and develop new products that promote the development of the company’s business and future plans.

It should be noted that the share of UAE citizens must not be less than 51 percent of the issued capital of the company.