Hum Network to launch $50mn Pakistan Katalytic Fund
- Money will be invested in 'technology and related companies which have the potential to scale their business'
Hum Network FZ LLC, a 100% owned subsidiary of HUM Network Limited (HUMNL), has entered into an arrangement with GS Group Inc. as General Partners (GPs) to launch and manage a fund named Pakistan Katalytic Fund (PKF) with an expected fund size of close to $50 million.
In a notice sent to the Pakistan Stock Exchange (PSX) on Thursday, HUMNL announced that “its 100% owned subsidiary, HUM NETWORK FZ LLC., has entered into an arrangement with GS Group Inc. as General Partners (GPs) where the GPs will work together to launch and manage a fund named Pakistan Katalytic Fund (PKF) with expected fund size of close to $50 million.
“Through PKF, GPs will invest the funds of different limited partners in technology and related companies which have the potential to scale their business with an objective of generating target returns for investors,” read the notice.
“The GPs shall work together and pool in their respective expertise to manage the said PKF and to set up Fund Management Company(ies) in any jurisdictions deemed suitable,” it added.
HUMNL was established in 2004 as a public limited company under the repealed Companies Ordinance, 1984. Its operations include launching transnational satellite channels and presenting content that is reminiscent of local culture. Some of its key divisions are production, advertisement, entertainment, and media marketing.
In FY22, the company witnessed the highest growth in revenue at over 39% to reach an all-time high of Rs6 billion. This was attributed to an increase in revenue coming from all divisions, particularly Hum News and the digital media sector which saw a growth of 133% and 84%, respectively.
The company has explored various avenues to diversify from the typical advertisement revenue from channels to advertisement revenue from the digital media sector. Despite this, the challenges from the external environment, such as inflationary pressures and expected higher taxation can impact future profitability.
At the time of filing, the scrip of the company was being traded at Rs6.65, down by 12 paise (1.84% DoD).
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