PACRA Maintains Entity Ratings of Al-Hoqani Securities & Investment Corporation (Pvt.) Limited

The rating reflects moderate credit risk of Al­Hoqani Securities. Al­Hoqani Securities is the prime vehicle that provides requisite support to Investment / Assets of late Mr. Suleiman Ahmed Saeed Al­Hoqani in Pakistan. This investment service provides sustainable revenue stream to the company. Active management and constant profit taking from the proprietary book of the company has provided support to the net profit consequently reducing unappropriated losses. However, profitability of the company is considered to be constrained as the recurring revenue from brokerage function hardly matches the operational cost. The management has taken steps to further strengthen its position through its diversified revenue stream, by adding on local institutional clients, Money Market, FX and Corporate Finance Activities. Comfort can be drawn from the reduction in the finance cost burden due to decline in the short term borrowings. The management is in process of reduction of short term liabilities through recoveries and settlements of outstanding debtors which will significantly improve the financial health. As part of the plan to develop a research department to support the investment decisions and facilitate its clients the company successfully obtained grant from SECP to serve as research entity under registration no. REP-098. The Al-Hoqani family is undergoing a legal process to transfer the assets of Mr. Suleiman Al-Hoqani to his legal hires. The company shall be owned and controlled by Al-Hoqani Family. The board composition of the company already involves two of the legal heirs.

The rating is dependent on the company’s ability to improve its diversified core operating revenues in order to further strengthen its position in the industry. Going forward, The Al-Hoqani family shall be the stake holders of the company.

About the Entity
Al­Hoqani Securities and Investment Corporation (Pvt.) Limited (established in March, 2005) was owned by Mr. Hoqani (99.9%). Its main activities include advisory services and equity brokerage. Al­Hoqani Securities is a key company for late Mr. Suleiman Ahmed Saeed Al­ Hoqani in Pakistan. Mr. Suleiman passed away on 9th of January, 2017.

The current board comprises four members. Mr. Ahmed Sulaiman Ahmed Saeed Al­Hoqani and Mr. Nasser Sulaiman Ahmed Saeed Al­Hoqani (Sons of Mr. Sulaiman) are non­executive directors. Mr. Abid Raza serves as an advisor to the Board. He adds value through his versatile experience of Investment management. He is a former CEO of PICIC AMC and was on the board of Pace Pakistan, Crescent Star Insurance, WorldCall telecom, KASB Bank, KASB Premier Fund in addition to his 8 years exposure of international financial market. The remaining two directors are executives. Of them, Mr. Akbar Naqi is a seasoned professional with an experience of more than two decades, having expertise in financial management, information technology and corporate finance. Mr. Mohammad Jafer Sadiq is a qualified power engineer with master’s degree in business administration, expertise in asset and wealth management, macro-economic research and portfolio management. He is associated with Local Representative of Mr. Sulaiman Ahmed Saeed Al­Hoqani for almost a decade on research and portfolio management. The CEO, Mr. Syed Dawar Raza Kazmi has been associated with the company for above six years and is supported by an adequate team. He is an MBA from University of Karachi.