Metatech Health Limited (META) said on Monday it will raise Rs408 million through a rights issue of 40.8 million shares at a price of Rs10 per share.

The company, in its notice to the Pakistan Stock Exchange (PSX), said that it will issue 40,878,338 Sukuk at a price of Rs10 per Sukuk, aggregating to Rs 408,783,380.

“The quantum of the right issue is approximately 550% of the existing paid up capital of the company i.e. approximately 550 right Sukuk for every 100 ordinary shares held by the shareholders of the company,” stated the notice.

The funds will be used for the development and operation of Ensmile Studios across Pakistan including working capital requirement; equity investment in Ensmile (Private) Limited up to Rs300 million; and repayment of issue expenses, trade and other liabilities.

Ensmile is a 3D technology based manufacturer that makes invisible dental aligners. Ensmile Studios offer teeth straightening treatment to patients using AI.

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Equity investment will be made for a 33.33% stake in Ensmile with the right to appoint 3 directors, or 40% directors on Board, whichever is higher.

“Ensmile will focus on export business (and development of export market) whereas META will handle local business of Ensmile through the development of Ensmile Dental Studios all across Pakistan and shall be responsible for sales and marketing,” said META.

Funds generated from the further issue of capital will be utilized in the healthcare business directly and indirectly through equity investment, it added.

Metatech Health Limited (formerly Hashimi Can Company Limited) was originally incorporated in 1958. After the acquisition and revival by a specialized Islamic Private Equity/Capital Venture vehicle in 2022, the business of the company has been changed to operate in technology-enabled healthcare business.

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At the time of filing, the shares of META were being traded at Rs11.55, up by Re0.66 or 6.06%.