Karachi: LSE Capital Limited has announced a new initiative to bolster its financial standing by issuing additional ordinary shares. As per the resolution passed by the company’s Board of Directors on January 16, 2026, LSE Capital Limited plans to increase its paid-up share capital by offering 24,693,310 ordinary shares at a par value of Rs. 5 per share. This move will be executed through a Right Shares issuance, which will be available at a proportion of 6.82 Right Shares for every 100 ordinary shares currently held by the shareholders. The right issue corresponds to a 6.82% increase of the company’s existing paid-up capital.
The total size of the Right Issue stands at PKR 123,466,550, as detailed by the Company. These funds are earmarked for strategic investments, prominently in Special Purpose Acquisition Companies (SPACs), as well as pre-IPO, IPO, and SPO offerings. The utilization of proceeds is aligned with LSE Capital Limited’s objective to diversify its investment portfolio and enhance profitability. According to information available from the Pakistan Stock Exchange (PSX), this initiative is also intended to position the company strategically within the Pakistani capital market, with the aim of fostering a pipeline of IPO-ready companies.
In terms of risk management, LSE Capital Limited has outlined several potential challenges associated with the Right Issue. These include risks such as undersubscription, investment strategy risks, and market risks. The Company has mitigated these risks through measures like underwriting the rights issue, conducting due diligence on potential investment targets, and maintaining a diversified investment portfolio.
The Company’s Board has resolved to ensure compliance with all applicable laws, including the Companies (Further Issue of Shares) Regulations, 2020. The Board has authorized key personnel to manage the Right Issue process, including the preparation and finalization of necessary documents and the communication of entitlements to shareholders in due time.
The move by LSE Capital Limited is designed to enhance the company’s financial robustness, with an expectation of positive returns for its shareholders, thus aligning with the company’s long-term strategic goals.