Pakistani IPP plans Rs535mn right issue to expand into healthcare

SG Power Limited, a Pakistani independent power producer (IPP), plans to raise nearly Rs535 million via the issue of right shares to invest in the healthcare sector.

The listed company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.

 “The company shall issue 53,499,600 ordinary shares at par value of Rs10/- per right share, aggregating to Rs534,996,000/-,” read the notice.

As per the document, the principal purpose of the right issue is to enable the company to invest in the healthcare sector and related businesses, with a focus on expanding and strengthening the company’s operations and supporting future growth initiatives.

“The capital raised will strengthen the company’s financial position, enhance its equity base, and provide the necessary resources to pursue strategic investment and business expansion opportunities in the healthcare industry, thereby delivering sustainable returns to shareholders and improving the company’s overall financial performance,” it added.

Apart from investment in the healthcare sector, the proceeds will be utilised to strengthen the company’s equity base, improve its financial position, and ensure compliance with applicable regulatory requirements, while delivering sustainable value and returns to its shareholders.

SG Power was of the view that the right issue would enable it to capitalise on strategic investment opportunities in the healthcare sector, thereby diversifying and strengthening its revenue base.

SG Power Limited was incorporated in Pakistan on February 10, 1994 under the Companies Ordinance, 1984.  The company is involved in the generation and supply of electric power to its associated company of SG Allied Businesses Limited.