Karachi: Apna Microfinance Bank Limited has announced a significant increase in its paid-up capital following resolutions passed at its Extraordinary General Meeting (EOGM) held on January 21, 2025. The meeting, conducted at the bank's registered office in Karachi, saw shareholders approve a proposal to raise the bank's paid-up capital from PKR 4.29 billion to PKR 5.64 billion.
The resolution outlines the issuance of an additional 135.04 million ordinary shares, valued at PKR 1.35 billion, to seven designated investors. This issuance is part of a special resolution approved by the shareholders, which allows for a further issue of shares by means other than a rights offer, aligning with section 83 of the Companies Act 2017 and regulation 5 of the Companies (Further Issue of Shares) Regulation, 2020. The increase is subject to approval from the Securities & Exchange Commission of Pakistan (SECP).
According to the resolution, the shares will be distributed among five existing shareholders and two new investors. The distribution includes United Track System (Pvt.) Limited, United Software and Technologies International (Pvt.) Limited, Tawasul Healthcare TPA (Private) Limited, Tawasul Risk Management Services (Private) Limited, Mr. Muhammad Akram Shahid, Margalla News International, and United International Farms. The shares will be issued at par value of PKR 10 per share.
The purpose of this capital increase, as highlighted in the resolution, is to meet the State Bank of Pakistan's capital adequacy ratio requirements, thereby ensuring the bank's uninterrupted operations. "According to information available from the Pakistan Stock Exchange (PSX)", funds amounting to PKR 1.35 billion were injected as share deposit money by these investors, which will now be converted into ordinary shares.
The bank's board has also appointed M/s. F.D. Registrar Services (SMC-Pvt.) Limited to assist with the share issuance process. Additionally, the Chief Executive Officer and Company Secretary have been authorized to take necessary actions to comply with the Companies Act, 2017, and other relevant regulations.
The proposed new shares will rank pari passu with existing ordinary shares, ensuring equality among all shareholders. The average market price of the share from September 26, 2024, to December 23, 2024, was PKR 10.0314, with the latest price recorded at PKR 10.01 as of December 23, 2024. The bank operates within the microfinance banking sector, playing a crucial role in providing financial services to the underserved segments of the market.