July 20, 2026 (MLN): Supernet Technologies Limited (PSX: STL) plans to raise Rs914.77 million through a right issue to strengthen its working capital and partially settle outstanding consideration payable to its parent, Telecard Limited, for the acquisition of Supernet Limited, according to the company's document submitted to the Pakistan Stock Exchange (PSX).
The company will issue 91.48 million ordinary right shares at Rs10 per share, equivalent to 85% of its existing paid-up capital, with shareholders entitled to subscribe to 85 right shares for every 100 shares held. The total issue size amounts to Rs914.77m.
Supernet has opted not to seek public comments on the draft offer document under the Companies (Further Issue of Shares) Regulations, 2020.
The board approved the right issue on July 15, 2026, with the issue price fixed at face value of Rs10 per share, representing a discount of approximately 79.94% to the prevailing market price of Rs49.86 as of July 13, 2026. The company said the deep discount is intended to encourage participation by existing shareholders and facilitate successful capital raising.
The entire proceeds will be allocated across two purposes. Around Rs464.77m, or 50.81% of the issue, will be used to meet incremental working capital requirements.
In contrast, the remaining Rs450m, or 49.19%, will be utilized to partially settle the purchase consideration payable to Telecard Limited under the share purchase agreement signed on February 15, 2024.
According to the offer document, the working capital will support procurement of inventory for large turnkey projects, financing of receivables and performance guarantees, and maintaining operational liquidity. The company said it recently secured a contract worth approximately Rs1 billion and expects additional projects to support future growth.
The document highlights that the merged group's consolidated revenue increased to Rs9.27 billion in FY2025 from Rs8.50bn a year earlier, while non-service revenue posted a compound annual growth rate of 65% between FY2021 and FY2025.
The remaining proceeds will be used to reduce the outstanding amount owed to Telecard following the acquisition of a 51% stake in Supernet Limited for Rs822.21m.
Following the payment of Rs450m from the right issue proceeds, a balance of approximately Rs372.21m will remain payable, which the company said may be financed through another right issue, internal resources or bank borrowings.
Supernet noted that Supernet Limited was subsequently merged into Supernet Technologies Limited effective March 30, 2026, under a Scheme of Arrangement sanctioned by the Sindh High Court.
Upon full subscription, the company's paid-up capital will increase by 85% from Rs1.08bn to Rs1.99bn, while the total number of shares will rise from 107.62 million to 199.10 million.
Total equity is projected to increase by 37% to Rs3.40bn, whereas the gearing ratio is expected to improve to 26.72% from 36.55%. However, the net asset value per share will decline to Rs17.08 from Rs23.10 due to the enlarged share base.
Telecard Limited, the company's holding company, currently owns 61.67% of Supernet and has undertaken to ensure subscription of up to 35.17 million right shares, amounting to Rs351.71m.
Following the issue, Telecard's shareholding is expected to decline to 51% owing to the increase in total shares outstanding. Directors and substantial shareholders have committed to subscribe to their respective entitlements or arrange subscriptions through other investors.
The company has appointed Meezan Bank Limited as banker to the issue. At the same time, Dawood Equities Limited and Topline Securities Limited will act as underwriters, underwriting a combined Rs563.05m of the offering.
Supernet identified key risks associated with the offering, including potential undersubscription, operational, cybersecurity, technology obsolescence, customer concentration, liquidity, exchange rate and regulatory risks.
The company said commitments from major shareholders and underwriting arrangements significantly reduce the risk of undersubscription.