Karachi: Crescent Star Insurance Limited has decided to significantly increase its paid-up share capital by issuing 148,619,157 ordinary shares as Right Shares, the company announced. The board of directors approved the move during meetings held on April 30 and May 4, 2026, at the company’s registered office in Karachi.
The new shares, each with a face value of PKR 10, will be offered at a discounted price of PKR 5 per share, effectively a 50% discount. This Right Issue, approximating 100% of the existing paid-up capital, will be available at a ratio of one Right Share for every existing ordinary share held. This proposal remains subject to shareholder and Securities and Exchange Commission of Pakistan (SECP) approval.
According to information available from the Pakistan Stock Exchange (PSX), the move is intended to bolster the company’s investment portfolio, specifically through an investment in PICIC Insurance Limited. The company plans to invest up to PKR 1.00 billion in PICIC Insurance Limited, subject to regulatory approvals. This investment is expected to complement Crescent Star Insurance’s current portfolio and transform PICIC Insurance into a subsidiary.
The proceeds from the Right Issue are slated for strategic investments, reinforcing the company’s capital base and solvency margins. These enhancements aim to facilitate larger risk underwriting and ensure regulatory compliance, ultimately leading to improved profitability and sustainable shareholder returns.
Despite the discounted share price, no major investment risks are anticipated, as the shares are priced based on a 90-day average preceding the announcement. The company’s substantial shareholders and directors have committed to subscribing to their entitled shares, with the remaining portion of the Right Issue fully underwritten.
The dates for the closure of the share transfer books, which will determine shareholder entitlement to the Right Shares, will be announced following the finalization of the offer documentation, in compliance with the Companies (Further Issue of Shares) Regulations, 2020.