Abu Dhabi – Mubasher: The AED 500 million rights issue of Gulf Pharmaceutical Industries (Julphar) has been oversubscribed 2.3 times to settle at AED 1.14 billion on application which closed on 12 July.

The net proceeds from the rights issue will be used to implement the company's growth plans, repay existing loans, meet the needs of its working capital, and invest in product development, according to the company's disclosure to Abu Dhabi Securities Exchange (ADX) on Wednesday.

The fund raised from the rights issue will also help the company to maintain a healthy balance sheet amid the current coronavirus (COVID-19) crisis.

First Abu Dhabi Bank (FAB) acted as the lead manager and Matouk Bassiouny and Ibrahim as the legal counsel for the transaction.

In this regard, the chairman of Julphar, Sheikh Saqer Humaid Al Qasimi, said: "We are delighted at the resounding success of the rights issue after the subscription of over AED 1.1 billion in shares."

Meanwhile, the CEO of Julphar, Essam Farouk, remarked: "When I first joined in April, 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."

It is noteworthy to mention that on 29 June, the company has launched the AED 500 million rights issue at an offer price of AED 1 per share.