Key Takeaways
- Ningbo Green Light Energy is set to become Pakistan’s first SPAC listing on the PSX.
- The company is awaiting court approval to complete a reverse takeover of LSE SPAC I Ltd.
- This move aims to bring renewable energy company to public market within weeks.
Ningbo Green Light Energy, a solar company, is preparing to enter Pakistan’s stock market through a special purpose acquisition company (SPAC), marking the country’s first SPAC transaction.
According to Ningbo CEO Qasim Ningbo, the company is waiting for court approval to complete a reverse takeover of LSE SPAC I Ltd., a subsidiary of LSE Capital Ltd.
Once approved, the transaction is expected to bring the renewable energy company to the public market within weeks.
LSE SPAC I raised Rs. 250 million through an initial public offering earlier this year and used the proceeds to purchase a 19 percent stake in Ningbo.
The proposed transaction comes as Pakistan’s IPO market records its busiest year, with 13 IPOs raising a combined Rs. 23.1 billion so far this year.
Aftab Ahmad Chaudhry, CEO of LSE Capital, stated that the SPAC structure could expand access to capital markets for growth-stage companies and businesses that may not be large enough for a conventional IPO.
Ningbo has installed more than 300 megawatts of solar capacity and is expanding a financing model that allows businesses to install solar systems without making the full payment upfront.
Under this model, companies can spread their payments over time, making renewable energy solutions more accessible and affordable.
The IPO market has remained active despite the benchmark KSE 100 Index being down 2.5 percent this year, while the MSCI Frontier Markets Index has gained 9 percent.
