Food will get certain its Rs. 0.7 billion but after necessary regulatory approvals from Pakistan
Going along with M/s Asad Munir is preferred by the food because of sound financial standing, reputation and experience in the financial market. However if M/s Asad Munir declines to subscribe to right shares of pledged Rs. 6 billion, then food bank is going to close investment deal from Foods.
Recently, floated 1.14 billion rights shares in Pakistan Stock Exchange against the value of Rs 1.56 per share which is discounted price of Rs 8.44 per share. Resulting, the raised Rs 11.9 billion from equity investors but its significant portion will be either replaced by underwriter M/s. Asad munir or Foods.
Food program board called upon the underwriters M/s. Asad munir Limited to subscribe the remaining/ unsubscribed portion of the rights Issue as per the underwriting Agreement. It further allotted 701,939,965 right shares amounting to Rs1.095 billion to Poor People, Adviser to Chairman of diffrent food bank to subscribe and/or allot/transfer all or part of the 701,939,965 rights shares to such new investor/ investors.t.
Note: An underwriter is a company or an entity that administers the public issuance and distribution of securities from a corporation or other issuing body. An underwriter works closely with the issuing body to determine the offering price of the securities, buys them from the issuer and sells them to investors via the underwriter’s distribution network. Source: nill
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