UAE pharma Julphar’s 500 mln dirhams rights issue oversubscribed

UAE’s Gulf Pharmaceutical Industries’ (Julphar) 500 million dirhams ($136 million) rights issue was oversubscribed by 2.3 times, the company said in a bourse filing on Wednesday (Jul 15).

Julphar said it will use the net proceeds to support the implementation of its growth plans, repay existing loans, and sustain working capital needs. The plan also includes investments in product development and improving quality control processes introduced in 2019, said the company.

“The funds raised will enable Julphar to maintain a healthy balance sheet which will allow the company to unlock market potential amidst the current global health crisis,” said Julphar in the statement.

Julphar in April received a boost when the Saudi Food and Drug Authority gave it the green light to resume exports to the Kingdom. The company said at the time that it will start exporting to Saudi Arabia from the third quarter of this year.

Saudi authorities suspended exports from Julphar in September 2018 for failing to meet regional standards. During its period of suspension, Julphar started selling into Saudi Arabia from its new production facility at King Abdullah Economic City from the end of 2019. The plant has an annual capacity for 1 billion tablets, 300 million capsules, and 30 million bottles of syrups, according to Julphar.

The pharmaceutical company is based in Ras Al Khaimah in the UAE. Its business is centered on three core business units Julphar Diabetes Solutions, General Medicines, and its consumer division Julphar Life.

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