Ghani Chemical Industries Limited has proposed a right issue of up to Rs. 1.16 billion to finance its investment in three projects, subject to shareholder and regulatory approvals.

In a notice to the Pakistan Stock Exchange on Monday, the company said its board had approved the proposal to issue up to 116.37 million Class B tracking shares at Rs. 10 each.

The proposed issue would raise up to Rs. 1.16 billion and represents around 20.40 percent of the company’s existing paid-up ordinary share capital.

Under the proposed plan, eligible shareholders would receive Class B tracking shares based on their existing holdings. The final entitlement ratio will be determined after the required approvals.

Ghani Chemical said the funds would be used for its equity investment in the Silo Lashari, Jandran and Maiwand projects.

The three projects have an estimated total cost of around Rs. 6.02 billion. The financing plan includes approximately Rs. 4 billion in project debt and Rs. 2.01 billion in equity.

Of the equity requirement, Rs. 1.16 billion would be raised through the right issue, while the remaining Rs. 850 million would come from the company’s internal resources.

The company said the projects would support its expansion and diversification and could provide exposure to future earnings and distributions from the investments.

The right issue is subject to shareholder approval, changes to the company’s authorized share capital and other corporate documents, regulatory clearances and final agreements for the proposed transaction.

The board has proposed holding an extraordinary general meeting to seek shareholder approval. Further details, including the final entitlement ratio and issue schedule, will be announced after the required approvals.