Karachi: On October 19, 2026, Premier Insurance Limited submitted its final offer documents for a rights issue aimed at bolstering its paid-up capital to comply with the Securities & Exchange Commission of Pakistan's (SECP) revised capital requirements. The company plans to issue 20,226,042 new ordinary shares at a face value of PKR 10.00 each, aggregating to a total of PKR 202.26 million. This rights issue, approved by the Board of Directors on September 24, 2026, offers existing shareholders 40 new shares for every 100 shares held, representing an increase of 40% in the company's existing paid-up capital.
According to information available from the Pakistan Stock Exchange (PSX), the rights issue is intended to ensure compliance with SECP S.R.O. 310 (I)/2025, which mandates an increase in the company's paid-up capital from PKR 505.65 million to PKR 1.0 billion by December 31, 2026. The funds raised through this issue are primarily to meet the regulatory requirements rather than business expansion or investment activities. The proceeds will be allocated within the company's investment portfolio, which encompasses equity securities, government securities, debt securities, term deposits, and mutual funds, as per the approved Investment Policy. The company aims to generate optimal risk-adjusted returns, thereby enhancing its investment income and contributing to its overall profitability and financial sustainability.
The rights issue documents state that the minimum level of subscription is not applicable, as commitments from directors and substantial shareholders, along with underwriting, fully cover the issue. This arrangement ensures that the company meets its capital objectives without any subscription shortfall concerns. As indicated, the break-up value per share is expected to decrease by 17.90% from PKR 26.77 to PKR 21.98 post-issue, while the gearing ratio is anticipated to decline by 13.00%, reflecting a more conservative capital structure.
Financial expenses associated with the rights issue include a financial advisory fee of PKR 2 million, a PSX fee of PKR 404,520, and a SECP supervisory fee of PKR 40,452. Other costs include a CDC fee of PKR 300,000 and various other expenses amounting to a maximum of PKR 2.5 million.
The Board of Directors, chaired by Mr. Khalid Bashir, comprises both executive and non-executive members, including Mr. Nadeem Maqbool, Mr. Sharik Bashir, Mr. Ahsan Bashir, and Mr. Imran Maqbool, all of whom attended the meeting approving the rights issue.
Premier Insurance Limited's market share in the general insurance sector remains at 0.34% as of June 30, 2026, with no change post-issue, underscoring the strategic focus on regulatory compliance rather than market share expansion.