Abu Dhabi – Mubasher: Gulf Pharmaceutical Industries (Julphar) has launched a rights issue to raise AED 500 million and improve its capital position and debt profile.

By raising AED 500 million, the company will finance its turnaround plan and put its medium-term growth strategy into effect, according to a press release on Monday.

The funds will also help the company expand its business in key markets including Saudi Arabia, Iraq, and Egypt.

The company will issue 500 million new shares with a nominal value of AED 1 to shareholders, as part of its capital restructure which included a capital reduction of AED 503 million.

The subscription period of the shares begins on 29 June 2020 and ends on 12 July.

The CEO of Julphar, Essam Farouk, said: "The AED 500 million rights issue is central to our turnaround strategy, which capitalises on Julphar’s core competencies to strengthen our balance sheet and invest in sustainable growth opportunities, while creating sustainable shareholder value."

It is noteworthy to mention that in the first quarter (Q1) of 2020, the pharmaceutical manufacturer logged AED 62.5 million in net losses attributable to shareholders, down from AED 89.1 million in the year-ago period.