Hubco raises Rs7.0bn in one of the largest right issue at PSX
KARACHI: Hub Power Company Limited (HUBCO) has raised Rs7.0 billion in the country’s largest ever right issue at Pakistan Stock Exchange (PSX). The right issue is priced at Rs50/ share and the company has issued 140 million shares, as decided by the Board of Directors of Hubco.
Considering the size of the offering, the right Issuance is viewed as one of the largest share offering in the history of PSX.
“The purpose of Rights Issuance is to raise funds which will be utilized to consolidate Hubco’s energy portfolio and increase its shareholding in China Power Hub Generation Company (CPHGC) from 26% to 47.5 percent”, said Khalid Mansoor, Chief Executive of Hubco.
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 the units of CPHGC have been synchronized 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”, Hub Power Company currently produces over 1600 MW electricity through its three plants located in Hub at Baluchistan, Narowal in Punjab and Mirpur in Azad Jammu & Kashmir, generating around 8.0 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 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 3580MW after completion of the aforementioned power projects.