Liven Pharma Limited has announced plans to raise Rs200 million via a rights issue to strengthen its financial position and support business expansion.
The company disclosed in its notice to the Pakistan Stock Exchange (PSX) on Friday.
According to the disclosure, the company will issue 20 million ordinary shares at Rs10 per share — representing around 21.5% of its existing paid-up capital. This translates into 21.496 rights shares for every 100 ordinary shares held by shareholders at the close of the share transfer books.
“The proceeds from the rights issue will be utilised to fund the company’s day-to-day working capital needs and capital expenditure (CAPEX) requirements, both of which are vital for sustaining business growth,” read the disclosure.
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Liven Pharma shared that the primary purpose of the rights issue is to raise funds for capital investments, including the establishment of a new Dry Powder Injectables division, procurement of vehicles, and expenses related to Drug Regulatory Authority of Pakistan (DRAP) registration and licensing.
The pharmaceutical noted that the issue price of Rs10 per share, equal to the face value, is justified in light of the current market price and prevailing practice.
“The right issue is expected to positively impact profitability, thereby enhancing returns to shareholders,” the company said, adding that its substantial shareholders and directors have confirmed participation in their entitlements.
The company maintained that the right issue is being carried out at a price which is less than the current share price in the market, and hence, there is no major investment risk associated with the issue.
Liven Pharma Limited was incorporated in Pakistan as a private Limited Company on October 21, 1991 and was converted into a public limited company on April 30, 1992, under the Companies Ordinance, 1984 (Repealed with the enactment of the Companies Act, 2017). The principal activity of the company is the manufacturing of pharmaceuticals and allied products.
