Hubco issues one of the largest right shares in PSX
Last updated on: 04 July,2019 03:52 pm
The company has issued a total of 140 million right shares at Rs50 per share, totaling Rs7 billion.
KARACHI (Dunya News) – Hub Power Company Limited (Hubco), the largest independent power producer of Pakistan, has decided to raise equity financing worth Rs7 billion by issuing right shares to existing shareholders at the Pakistan Stock Exchange (PSX).
The company has issued a total of 140 million right shares at Rs50 per share, totaling Rs7 billion, as decided by the Board of Directors of Hubco.
Considering the size of the offering, the rights issue is viewed as one of the largest share offering in the history of the stock exchange.
The purpose of the rights issue is “to increase the investment stake in China Power Hub Generation Company (CPHGC) from 26% to 47.5% via Hub Power Holdings Limited (HPHL),” said Khalid Mansoor, chief executive of Hubco.
The CPHGC is a joint venture between China Power International Holding Ltd (CPIH) and Hubco under which development, construction and operation of 2x660MW imported coal-fired power plant is being funded by the two companies.
Both units of the CPHGC have been synchronised with the national grid and the project is expected to start its commercial operations by August 2019.
With the aim of “fueling lives through energy”, the Hub Power Company Limited currently produces over 1,600 megawatts through its three plants located in Hub at Baluchistan, Narowal in Punjab and Mirpur in Azad Jammu and Kashmir. This generates around 8 percent of the total power generation capacity in the country.
The company is the only power producer in Pakistan with four upcoming projects listed in the China-Pakistan Economic Corridor (CPEC), and currently, under-construction, namely imported coal-based China Power Hub Generation Company (Private) Limited (CPHGC) at Hub, Thar Energy Limited (TEL) and Thalnova Power Thar (Pvt) Ltd and Sindh Engro Coal Mining Company (SECMC) at Thar Block II.
The power generation capacity of the company will enhance to over 3,580 megawatts after completion of the aforementioned power project.