Key Takeaways
- LSE Financial Services Limited plans to raise Rs. 159 million through a right issue.
- Proceeds will be used for Special Purpose Acquisition Companies and investments in pre-IPO companies.
- The company aims to diversify its investment portfolio and support early-stage businesses.
LSE Financial Services Limited has announced plans to raise Rs. 159 million through the issuance of 159 million ordinary right shares at a price of Rs. 1 per share, according to a notice issued to the Pakistan Stock Exchange on Monday.
The proposed issue will represent 58.89 percent of the company’s existing paid-up share capital, with eligible shareholders being offered 58.89 right shares for every 100 ordinary shares held.
Of the total proceeds, 75 percent, or Rs. 120 million, will be earmarked for Special Purpose Acquisition Companies (SPACs), while the remaining Rs. 39 million will be used for investments in pre-IPO, IPO, and secondary public offering companies, as well as investments in associates.
The board will have discretion to allocate the funds among these purposes, aiming to establish an investment pool for expanding its participation in the SPAC and private equity markets.
LSE Financial Services, which traces its origins to the former Lahore Stock Exchange, was incorporated in 1970. Following the integration of Pakistan’s stock exchanges in January 2016, the residual entity was converted into an investment finance services company.
Its shares began trading on the Pakistan Stock Exchange in May 2024 after a restructuring and transfer of listing status under a scheme involving Modaraba Al Mali and LSE Capital.
The company’s NBFC license expired in January 2025, and it decided not to renew it, focusing instead on its new strategic direction.
The company expects the capital raise to help diversify its investment portfolio, support early-stage businesses, and create a pipeline of companies that could eventually be ready for initial public offerings.
