Liven Pharma Limited (PSX: LIVEN) has announced a plan to raise Rs. 200 million through a rights issue aimed at improving its financial position and funding business growth.
The company informed the Pakistan Stock Exchange (PSX) of the decision on Friday.
Under the plan, the company will issue 20 million ordinary shares at Rs. 10 each, equivalent to 21.5% of its existing paid-up capital. Shareholders will receive 21.496 rights shares for every 100 shares held at the close of the transfer books.
The proceeds will be used to meet working capital and capital expenditure requirements, including the establishment of a new Dry Powder Injectables division, purchase of vehicles, and costs related to Drug Regulatory Authority of Pakistan (DRAP) registration and licensing.
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Liven Pharma noted that the issue price of Rs. 10 per share, equal to its face value, is reasonable given current market trends. The company expects the offering to support profitability and enhance shareholder returns. Substantial shareholders and directors have already confirmed their participation.
It added that since the rights issue is priced below the prevailing market value, investors face no major risk.
