RAS AL KHAIMAH - Gulf Pharmaceutical Industries, Julphar, announced today that its AED500 million rights issue was successfully completed and more than two times oversubscribed.
According to a press release issued by Julphar on Wednesday, the company will use the net proceeds of the rights issue to support the implementation of its growth plans, repay existing loans, and sustain its working capital needs. This will also include investments in product development as well as the further elevation of the stringent quality control processes introduced in 2019.
The funds raised will enable Julphar to maintain a healthy balance sheet which will allow the company to unlock market potential amidst the current global health crisis. First Abu Dhabi Bank acted as the Lead Manager and Matouk Bassiouny & Ibrahim as the legal counsel for the transaction.
Sheikh Saqer Humaid Al Qasimi, Chairman of the Board, Julphar, said, "We are delighted at the resounding success of the rights issue after the subscription of over AED 1.1 billion in shares. This represents another major step forward in the company’s journey of transformation and growth. Following this success, I would like to thank our shareholders for their overwhelming affirmation in Julphar’s capabilities and their strong conviction in its promising future. 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."
Dr. Essam Farouk, Chief Executive Officer of Julphar, stated, "One of our main priorities was to solidify our capital management strategy in order to strengthen the business positioning of Julphar as a leading healthcare company. I believe that we are proceeding well and according to plan. The equity injection will act as a critical growth catalyst and gives us a platform to build on for the near future." 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.
© Copyright Emirates News Agency (WAM) 2020.