PACRA Maintains the Broker Management Rating of Optimus Capital Management (Pvt.) Limited.
|Rating Type||Broker Management|
The ratings reflect the Company's modest market share in the brokerage industry. The assigned rating takes into account its sound risk management framework, organizational structure and IT infrastructure. The rating entails from zero leveraging and improving retail brokerage. The Company has devised comprehensive IT policy, KYC Risk Management procedures and Disaster Recovery Plan. The Company has embedded a well-developed transactions execution and monitoring system, acclaimed research and strong control environment. The management team comprises seasoned professionals that ensures sound quality of services. The company has limited exposure to market risk due to no proprietary trading policy. The Company has no independent director on board and the governance framework needs improvement. Furthermore, the Company has adequate capitalization levels with the Net Capital Balance (NCB) of ~PKR 208mln as at 31st Dec'19. The equity base of ~PKR 317mln provides cushion against potential losses.
The rating is dependent on the managements's ability to enhance the volumes and diversity of revenue in order to improve its competitive position in the brokerage industry.. Retaining market share and sustaining profitability from core operations remain critical. Meanwhile, retention of key management personnel and strengthening process and procedures is important.
Optimus Capital Management (Private) Limited, formerly known as Millennium Capital Management (Pvt) Ltd, was incorporated in 2004. The Company’s prime business is equity brokerage, financial advisory, equity investments research and corporate finance services to individual and institutional clients.The Company is wholly owned subsidiary of Optimus Holdings (Private) Limited (formerly Peabody Associates Private Limited). The two sponsors of Optimus Holdings, Mr. Asif Ali Qureshi and Mr. Jawad Amjad, have more than two decades of experience in the financial sector of Pakistan. The Company’s board is composed of two directors, Mr. Asif Ali Qureshi and Mr. Muhammad Ovais Ahsan. Mr. Asif is the Executive Chairman and Mr. Ovais Ahsan is the CEO of the Company.