HUBC will hold its Annual General Meeting (AGM) on Wednesday, October 15, 2025, at 10:00 a.m. to seek shareholder approval for routine business and a proposed investment in Mega Motor Company (Pvt.) Ltd (MMCPL).

Key agenda items include:

– MMCPL, a joint venture with BYD, aims to secure USD 90 million (PKR 25 billion) from local and international lenders, such as British International Investment, BOP, and HBL, to establish a 25,000-unit New Energy Vehicle assembly plant in Gharo, Sindh.

– HUBC will provide a corporate guarantee of up to USD 55 million (PKR 16 billion) until June 30, 2039, covering cost overruns, debt servicing, or working capital shortfalls.

– Preliminary site development is underway, including boundary wall construction, land leveling, and foundation work, with plans for the project to become operational by the fourth quarter of FY26.

– The project is expected to begin dividend payouts within two to four years of commencing operations, financed through a 60:40 debt-to-equity ratio, necessitating an initial equity investment of around USD 60 million (~PKR 17 billion) from sponsors.

– MMCPL anticipates strong earnings potential, with an initial annual capacity of 25,000 units (expandable to 50,000) and a projected long-term return on equity (ROE) of approximately 25%.

– HUBC’s current financing cost is pegged at 1 to 3 months KIBOR plus 0.3% annually.

Courtesy – AHL Research