April 8, 2020 (MLN): Pakistan Refinery Limited has put its Right Issue process, amounting to Rs. 3.15 million, on hold due to difficulties in arranging underwriting amidst the ongoing pandemic.
“As the entire world has witnessed an unprecedented economic downturn and lockdown due to novel Coronavirus (COVID-19) pandemic, the global financial markets are under tremendous pressure. This serious downturn has taken its toll on Pakistan’s financial sector as well eroding the confidence of investors, as evidenced by the massive erosion in PSX 100 index since March 9, 2020.
“Unfortunately, this adverse phenomenon coincided with our Right Issue process, affecting its negatively. For information, the company is required to arrange underwriting of 40% of the Rights Issue, but the underwriters are unable to give any commitment based on the prevailing uncertainty and hence the Right Issue is practically on hold.
“It is important to note that Pakistan State Oil Company Limited being the parent company with 60% shareholding and all the concerned directors have already deposited amount in designated bank accounts respective to their shareholding. However, considering the aforementioned difficulties in arranging underwriting, which tantamount to a ‘force majeure’ situation, the Company had requested SECP for the waiver of the abovementioned underwriting requirement” the company said in its notification to PSX.
Once the company receives any directive or clarification from SECP, it will inform through PSX and move ahead accordingly. For the time being, the Company is applying to PSX for a one-month extension in the Rights Issue process.
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