Dubai: Gulf Pharmaceutical Industries PSC (Julphar), one of the largest pharmaceutical manufacturers in the Middle East and Africa, has announced Wednesday that its Dh500 million rights issue was successfully completed and more than two times oversubscribed.
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.
“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,” said Sheikh Saqer Humaid Al Qasimi, Chairman of the Board, Julphar.
This year, Julphar announced the relaunch of over 80 products within Saudi Arabia, Kuwait, Bahrain, and Oman, with initial sales continuing at a brisk pace during Q2.