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Dandot Cement to Issue Over 68 Million Shares to Convert Loans into Equity

Islamabad, Dandot Cement Company Limited has received approval from the Securities and Exchange Commission of Pakistan (SEC) to issue 68,181,818 ordinary shares, with a move aimed at converting outstanding loans into equity. This initiative is part of a non-rights share offering authorized under Section 83(1)(b) of the Companies Act, 2017, coupled with regulation 5 of the Companies (Further Issue of Shares) Regulations, 2020.

The competent authority, Commissioner (SMD) of the SEC, sanctioned the issuance following a special resolution by the shareholders during the Extraordinary General Meeting held on November 1, 2023. The shares, priced at Rs. 10 per share with an additional premium of Rs. 12 per share, will collectively raise Rs. 1,500 million.

The breakdown of the share distribution includes Calicom Industries Ltd., which will convert a loan of Rs. 500 million into 22,727,273 shares. Additionally, individual investors Mr. Zahid Rafiq and Mr. Jahanzaib Zahid will convert loans of Rs. 850 million and Rs. 150 million into 38,636,363 and 6,818,182 shares, respectively.

The approval mandates that all issued shares be in book entry form and completed within 60 days from the date of approval. Post-issuance, Dandot Cement is required to inform both the Commission and the securities exchange within seven days. Calicom Industries is further obligated to maintain its resultant shareholding for two years, whereas Mr. Zahid Rafiq and Mr. Jahanzaib Zahid must retain their shares for at least six months.

The combined shareholding of Mr. Zahid Rafiq and Mr. Jahanzaib Zahid post-transaction will exceed 14%, triggering additional compliance with the Listed Companies (Substantial Acquisition of Voting Shares & Takeovers) Regulations, 2017. This approval is based solely on the documentation and information provided to the SEC, with the Commission disclaiming any responsibility for agreements related to the issuance.