May 12, 2022 (MLN): Oilboy Energy Limited (PSX: OBOY) has decided to raise Rs150 million through a right issue of 15mn ordinary shares at a par value of Rs10/- each, in order to meet the working capital requirement related to trading activities of Coal, Lubes, LPG and other Energy Products.
According to the notice issued by the company to PSX, the quantum of the right issue is approximately 150% of the existing paid-up capital of the Company i.e., approximately 150 right shares for every 100 ordinary shares held by the shareholders of the Company.
The purpose of the right issue is to meet the working capital requirement related to trading activities of Coal, Lubes, LPG and other Energy Products and repayment of issue expenses, trade and other liabilities.
The funds generated from the further issue of capital will be utilized in the trading business of “energy products” as illuminated in the “Revival Business Plan”, the company said.
With regards to risk factors associated with the right issue, the company said “it has been announced at well below current market price and also underwritten as per requirements of the applicable regulations. Thus, there is minimal investment risk associated with the Right Issue.”
Copyright Mettis Link News