The Pakistan Credit Rating Agency Limited
07-Jun-18
Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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 Entity Rating of Optimus Capital Management (Pvt.) Limited
| Rating Type | Entity | |
|
Current (07-Jun-18 ) |
Previous (08-Dec-17 ) |
|
| Action | Maintain | Initial |
| Long Term | A- | A- |
| Short Term | A2 | A2 |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The Entity Rating of Optimus Capital Management (Private) Limited emanates from its emerging position in the brokerage industry. The rating assigned reflects the well-adopted approach to manage risks. The company as a policy prohibits proprietary trade exposure in the market. The investment related risks at clients’ end are managed properly through the risk management policy. The organizational structure is defined with most of the departmental heads reporting to the CEO. Experienced top management, adequate risk management systems and compliance procedures are the key traits of the company.
The board of the company comprises two executive directors. The company has adopted a dynamic approach to expand its clientele and increase its market share. The brokerage revenue stream and volumes are building up gradually. Moreover, the company has a debt-free capital structure which reduces the financial risk. The equity base has been growing due to accumulation of profits which provides cushion against losses. The company also provides corporate finance and financial advisory services. The research department provides various market reports to clients. Furthermore, value added services including mobile app is available.
The rating is dependent on the company’s ability to strengthen its emerging position in the industry. Retention of the key personnel and sustainability of profits is utmost. It further requires improvement in the governance framework, upholding strong internal controls and diligent monitoring of risks.
About
the Entity
Optimus Capital Management (Private) Limited, formerly known as Millennium Capital Management (Pvt) Ltd was incorporated in 2004. Company’s prime business is equity brokerage and it also provides financial advisory, equity investments research and corporate finance services to individual and institutional clients.
The company is 99.9% owned by 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 executive directors, Mr. Asif Ali Qureshi and Mr. Muhammad Mohsin Ahsan. Mr. Asif is the Executive Chairman and Mr. Mohsin is the Director Research of the company.