The Pakistan Credit Rating Agency Limited
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Shahzaib Khalid

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PACRA Upgrades Broker Management Rating of Optimus Capital Management (Pvt.) Limited

Rating Type Broker Management
Action Upgrade Maintain
Long Term BMR3+ BMR3
Short Term - -
Outlook Stable Positive
Rating Watch - -

The rating reflects the sound ability of the company to retain its market share in lackluster equity market activity. The rating incorporates the company’s sound business strategy and acumen and ability to provide extensive equity research. The company has devised comprehensive IT policy, KYC Risk Management procedures and Disaster Recovery Plan. The management team comprises Seasoned professionals that ensures sound quality of services. The company has majority of its revenue from local clients and management has devised a suitable strategy to attract foreign customers which would accumulate revenues. The company has zero leveraged capital structure and adequate capitalization levels with the Net Capital Balance of ~PKR 231mln as at 31st March 2019. The equity base of ~PKR 336mln provides cushion against potential losses. The company has no independent and non-executive director on its board; hence there is room for improvement in the governance framework.
The rating is dependent on the management's ability to retain its market share and enhance the volumes and diversity of revenue to improve its competitive position in the brokerage industry. Retention of key personnel, improvement in customer servicing tools and maintaining strong controls will bode well for the company.

About the Entity
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.

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's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. 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.