Lahore: Waves Home Appliances Limited has announced a 56% Rights Issue aimed at fortifying its financial foundation and bolstering medium-term growth targets. The Board of Directors approved this initiative on July 23, 2026, during its meeting, with the official report dated August 24, 2026. This move, pending regulatory consent, is part of the company’s strategy to enhance liquidity and support its business objectives.
The Rights Issue will involve the issuance of 150.02 million ordinary shares at a par value of PKR 10 per share, generating gross proceeds of PKR 1.50 billion. The funds are earmarked for two primary purposes: PKR 800.16 million (53.3%) will address working capital needs, while PKR 700 million (46.7%) will partially repay loans owed to the Holding Company. This financial maneuver aims to buttress the company’s fiscal stance and facilitate expansion within its air conditioner, deep freezer, and refrigerator segments.
According to information available from the Pakistan Stock Exchange (PSX), the Rights Issue will alter the company’s paid-up capital from PKR 2,678.90 million to PKR 4,179.00 million, while the net asset value per share will adjust from PKR 30.22 to PKR 23.98. The gearing ratio is set to improve from 1.42 to 1.06, reflecting a more robust financial position post-issue.
The issuance schedule is as follows: the book closure date is set for August 27, 2026. Trading of rights will commence on August 31, 2026, and conclude on September 14, 2026. The deadline for acceptance and payment is September 21, 2026, with shares being allotted and credited into the Central Depository Company by October 5, 2026.
Waves Home Appliances’ strategy aligns with its production and financial forecasts. The company anticipates a significant increase in production volumes across various product lines by 2028. Additionally, projected net sales are expected to rise from PKR 4,176 million in 2023 to PKR 14,311 million by 2028, with net profits anticipated to grow from PKR 116 million to PKR 1,878 million over the same period. Earnings per share are predicted to escalate from PKR 0.43 in 2023 to PKR 4.49 in 2028, reflecting an optimistic outlook for stakeholders.
This strategic financial decision places Waves Home Appliances Limited in a strong position to leverage market opportunities and expand its footprint in the competitive home appliances market.