Press Release
Date: 28-Oct-22
PACRA Maintains Broker Fiduciary Rating of Optimus Capital Management (Pvt.) Limited

Rating Details Rating Type BFR
Dissemination Date Current (28-Oct-22 ) Previous (29-Oct-21)
Action Maintain Initial
Rating BFR 3++ BFR 3++
Outlook Stable Stable
Rating Watch - -

Rating Rationale Factor Comment
Ownership The Company is a wholly owned subsidiary of Optimus Holdings (Pvt.) Limited. The CEO, Mr. Asif Ali Qureshi owns ~80% while Mr. Jawad Amjad owns ~20% of Optimus Holdings, respectively.
Governance The Board of Directors is comprised of two members including the CEO, Mr. Asif Ali Qureshi. Mr. Muhammad Mohsin Ahsan also holds a significant experience in capital markets.
Management and Client Services The Company has a sound organizational structure with a well-experienced management team. The Company has a well-developed research department covering ~80% of the KSE100.
Internal Controls and Regulatory Compliance The Company has an in-house internal audit and compliance function to monitor the control environment. However, separation of compliance and finance functions may be considered for better oversight.
Business Sustainability OCM primarily provides equity brokerage while diversification exists in the form of corporate finance.
Financial Sustainability An adequate equity base and a leveraged free capital structure provide support to the ratings.

Key Rating Drivers Optimus Capital Management (Pvt.) Limited ('OCM' or 'The Company') has a sustained position in the market with a reputation for handling large block trades. The rating takes note of satisfactory client servicing, appropriate IT infrastructure, effective internal audit function, prudent financial management, and adequate risk assessment & compliance procedures. The management team is comprised of seasoned professionals ensuring a sound quality of services. A full-fledged research department is in place to assist clients. The control environment may be strengthened further with the separation of compliance and finance departments. The Company is not running a proprietary book hence, less exposed to market risk. The topline has improved by ~26% YoY in FY22 despite declining market volumes, the necessary support was provided by a good share of the off-market transactions. The rating draws strength from the experienced profile of the CEO, Mr. Asif Ali Qureshi, who has been associated with the capital markets for over 25 years. The governance framework may be improved further by increasing board size and having independent representation.

About the Entity
Legal Structure Private Limited
Year of Establishment 18-Mar-04
Type of License Trading and Self-clearing
Majority Ownership Optimus Holdings (Pvt.) Limited

Regulatory Disclosures Analyst Applicable Criteria Related Research
Afnan Iqbal

Methodology | Broker Fiduciary Rating | Jan-22

Sector Study | Brokerage & Securities | Jan-22

Disclaimer This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.