GEMNETS wipes out bank loan with IPO proceeds

March 30, 2026 (MLN):Nets International Communication Limited (PSX: GEMNETS) completed the full utilization of its Initial Public Offering (IPO) proceeds toward the repayment of a short-term finance facility with Habib Metropolitan Bank Limited, as confirmed in the final progress report reviewed by external auditors Abdul Khaliq & Co.

The gross proceeds of the IPO stood at Rs36,760,000, with bank charges of Rs50,906 deducted, resulting in net proceeds of Rs36,709,094.

The entire net amount was applied against the principal outstanding of Rs36,709,054 under the short-term finance facility, leaving a zero balance with no accrued profit remaining.

The utilization commenced from the date of release of all IPO funds to the company on May 30, 2025, and was completed by June 02, 2025, well within the committed timeline. No rationale for delay was required, as the proceeds were deployed within the stipulated period.

The progress report was prepared under the Public Offering Regulations. The agreed-upon procedures engagement was conducted in accordance with the International Standard on Related Services (ISRS) 4400 (Revised) and was directed to the General Manager of the Pakistan Stock Exchange Limited (PSX).

The auditors performed two key procedures: tracing IPO amounts received through bank statements and verifying repayment details against short-term borrowings. No discrepancies were found in either procedure.

The aforementioned information was disseminated through a notification to Exchange.

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