⏸️ ASTL: HOLD Signal (6/10) – Material Information

📌 Key Takeaways

• 💰 ASTL plans to issue up to 40,000,000 new ordinary shares.
• 💸 The issue price is PKR 25 per share, including a premium of PKR 15.
• 💵 Total proceeds targeted are PKR 1,000,000,000 (PKR 1 Billion).
• 🧑‍💼 The shares will be issued to Mr. Shayan Akberali, an existing sponsor.
• 🤝 Mr. Akberali currently holds 17.09% shareholding in ASTL.
• 📈 The direct issuance will constitute up to 13.47% of the existing paid-up capital.
• ✅ Post-issuance, it will represent approximately 11.87% of the increased paid-up capital.
• 🚫 A rights issue was initially considered but is not permissible due to regulatory reasons.
• 🏦 The proceeds will be used to strengthen working capital and facilitate credit restructuring.
• 🚀 This is expected to enhance capacity utilization and long-term growth.
• 🚦 The issuance is subject to corporate and regulatory approvals, including shareholder approval.
• 💹 The issue price of PKR 25 is higher than the three-month average market price of PKR 23.48 as of October 2, 2025.
• 📅 The latest market price as of October 2, 2025, was PKR 24.88.
• 📖 The breakup value per share as of June 30, 2025, is PKR 35.18.

🎯 Investment Thesis

Given the circumstances, a HOLD recommendation is appropriate. The direct issuance is a necessary step to improve the company’s financial health, but the benefits are contingent on successful deployment of capital and the execution of the restructuring plan. While the sponsor’s commitment is a positive sign, the regulatory hurdles and market risks warrant a cautious approach. A more concrete recommendation would need detailed financial projections and a clearer picture of the company’s operational strategy following the capital infusion.