UAE’s Gulf Pharmaceuticals (Julphar) is pondering on raising $136 million through a rights issue to fuel its “ambitious turnaround plan” and extend its operations in Saudi Arabia, Iraq and Egypt, among other important markets.
One of the largest drug companies in the Middle East and Africa, Julphar stated in May that it succeeded to cut down its losses for the first three months of the year by 30 percent to $17.6 million, compared to $24.2 million a year earlier.
Julphar announced that the rights issue will better its capital position and debt outline. The new shares, given at a nominal value of 1 dirham($.27) are available to existing shareholders, with the subscription time starting on June 20 and closing on July 12, 2020.
“The new shares will provide investors with the same rights – including the right to receive all future dividends – as existing shares,” Julphar replied.
According to Shaikh Saqer Humaid Al Qasimi, chairman of the board at Julphar, the rights issue is a “key component” of the company’s transformation plan.
Dr. Essam Farouk CEO – Julphar.
“In the past few months, we have accelerated our transformation journey to reclaim Julphar’s leadership position in the MENA region. The 500 million dirham rights issue is central to our turnaround strategy, which capitalists on Julphar’s core competencies to strengthen our balance sheet and invest in sustainable growth opportunities.”
This year, the company reintroduced more than 80 products in Saudi Arabia and Oman. The two countries, along with Kuwait and Bahrain, had earlier briefly halted the sale of Julphar’s drugs in 2018, causing the business to incite some damages. The firm said that Saudi Arabia, Bahrain and Oman have already raised the ban, while Kuwait is anticipated to do the same soon.
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