#UAE's Julphar launches $136mln rights issue to drive expansion, cut debt | ZAWYA MENA Edition

UAE's Julphar launches $136mln rights issue to drive expansion, cut debt | ZAWYA MENA Edition:

UAE’s Gulf Pharmaceuticals (Julphar), which had earlier accumulated losses, is looking to raise 500 million UAE dirhams ($136 million) via a rights issue, it said on Monday.

The proceeds of the cash call will be used to finance the company’s “ambitious turnaround plan” and expand its operations in Saudi Arabia, Iraq and Egypt, among other key markets.

One of the biggest drug manufacturers in the Middle East and Africa, Julphar, reported in May that it managed to trim down its losses for the first three months of the year by 30 percent to 62.5 million UAE dirhams, compared to 891.1 million dirhams a year earlier.

In a statement on Tuesday, Julphar said the rights issue is set to improve its capital position and debt profile.