Oilboy Energy Limited, formerly Drekkar Kingsway Limited, said on Wednesday it will raise Rs250 million through a rights issue of nearly 25 million shares for Rs10 per share.
The listed company disclosed the development in a notice to the Pakistan Stock Exchange (PSX).
The company said that the market price of ordinary shares is Rs11.00 as of December 27, 2024. “However, the management of the company has decided to offer the right share at a face/nominal value of Rs10 per share.”
It added that the quantum of the right issue is 100.00% of the existing paid-up capital of the company i.e. 100.00 right shares for every 100 ordinary shares held by the shareholders of the company.
Briefing on the purpose of the right issue, Oilboy informed that the funds generated via the right issue will be utilized to finance a project for Bio Oil from Pyrolysis i.e. Waste to Energy Through “Fast Pyrolysis”.
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“The proposed plant is based on fast pyrolysis is a waste-to-energy process that quickly heats organic waste without oxygen, producing bio-oil, syngas, and char for energy and other uses,” it said.
The listed company added that the funds generated from the further issue of capital will be utilized in the new business venture including building, plant and machinery, furniture, equipment, working capital requirement etc.
Sharing timelines of the project, the company informed that the project is expected to start production within 10 months, by October 31, 2025. It will have a capacity of 3,800 to 4,000 tonnes per year, including byproducts.
Oilboy Energy was registered on June 28, 1993, as a Private Limited Company and was subsequently converted into a Public Limited Company on June 29, 1994.
The principal activity of the company is to manufacture electrical appliances, cosmetics, toiletries, leather goods, machinery, components and parts. In 1996the company sold its plant and machinery.
The company is currently engaged in making equity investments in undervalued profitable situations.
