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The Pakistan Credit Rating Agency Limited
Press Release

Date
09-Apr-21

Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com

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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

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

Rating Type Broker Management
Current
(09-Apr-21)
Previous
(07-May-20)
Action Maintain Maintain
Long Term BMR3+ BMR3+
Short Term - -
Outlook Stable Stable
Rating Watch - -

Assigned rating reflects the Optimus Capital Management (Pvt.) Limited’s (“Optimus Capital” or “the Company”) competitive position and adequate business profile. On governance front, inclusion of independent director would enable the Company to procure independent insight. The rating also takes note of satisfactory client servicing , appropriate IT infrastructure, effective internal audit function, prudent financial management and adequate risk assessment & compliance procedures. The rating incorporates the company's lack of diversification in revenue stream since the company’s services mainly comprise equity brokerage wherein the Company has competitive institutional clientele. The Company has maintained its market share at 2.5%. The rating takes comfort from leverage free capital structure. The Company has devised comprehensive Disaster Recovery plan 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. Furthermore, the Company has adequate capitalization levels with the Net Capital Balance (NCB) of ~PKR 191mln as at 1HFY21. The equity base of ~PKR 323mln provides cushion against potential losses.
Strengthen market share, sustainable profits, sound internal controls, client relationship, HR & IT services and risk management framework, regulatory compliance, external control environment will remain imperative. Further, rational diversification of business activity may provide support to the company’s overall financial risk profile.

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.