Pharmaniaga completes fundraising, edges closer to PN17 exit

New Straits Times

2 days ago

KUALA LUMPUR: Pharmaniaga Bhd has made headway in its regularisation plan with the completion of its rights issue and private placement exercises, moving closer to exiting its Practice Note 17 (PN17) status.
The pharmaceutical company said a total of 3.5 billion renounceable rights shares were fully subscribed, with an oversubscription rate of 26.14 per cent, indicating strong backing and confidence from existing shareholders.
Additionally, the private placement exercise brought in 19 new investors and involved 1.6 billion shares, raising a total of RM223.7 million.
"As both fundraising exercises have been completed, the group is set to conclude the final phase of its recovery plan, the capital reduction exercise which is targeted for completion by mid-August 2025.
"This marks a major step forward in Pharmaniaga's recovery and efforts to exit PN17 status by the first quarter of 2026," it said.
The group added that despite the fresh equity injection, Lembaga Tabung Angkatan Tentera and Boustead Holdings Bhd continue to be its major shareholders, collectively holding 43.9 per cent—comprising 8.7 per cent and 35.2 per cent stakes respectively.
Pharmaniaga remains a government-linked company, maintaining its focus on national interests and the welfare of the Malaysian armed forces.
Managing director Datuk Zulkifli Jafar said the oversubscription of the rights issue demonstrates strong market confidence in Pharmaniaga's business fundamentals, recovery strategy, and leadership.
"The group also views the participation of the 19 new institutional and reputable investors in the private placement exercise as a clear endorsement, that aligns with our broader objective of contributing to Malaysia's healthcare resilience and pharmaceutical self-sufficiency, a shared national aspiration," he said.
Zulkifli said the improved balance sheet allows the group to lower its debt and expand operations, particularly in high-impact areas like the development of human insulin, vaccines, and other generic medicines.
"We are currently advancing the development of Malaysia's first locally owned insulin and vaccine production facilities," he added.
Pharmaniaga's shares ended on a positive note, rising 9.38 per cent or 1.5 sen to close at 17.5 sen, with 218.5 million shares traded.