Following is a brief of DRAFT PROSPECTUS OF “LSE SPAC-I LIMITED” Download.
LSE SPAC-I Limited was incorporated on March 20, 2025, as a special purpose acquisition company (SPAC) for the sole purpose of raising money from the public and then entering into a merger or acquisition transaction. Thus, LSE SPAC-I does not have any business of its own. As per PO Regulations, the Issuer is required to complete the merger/acquisition transaction within a period of three (3) years from the date of its listing.
However, for this transaction, the Issuer intends to acquire an equity interest in NINGBO GREEN LIGHT ENERGY LIMITED or NGLE in the first phase and then in the second phase, the Issuer (along with the target company) shall file a merger scheme (i.e. the Scheme of Arrangement) under Section 279 to 283 of the Companies Act, 2017, with the honorable Lahore High Court (LHC), for merging the Issuer with/into NGLE, which the honorable LHC may then approve at its own discretion in due course of time.
Introduction
Pakistan's capital markets are evolving, and a landmark development is here: the launch of the country's first Special Purpose Acquisition Company (SPAC) — LSE SPAC-I Limited (ticker pending full listing). Listed on the Pakistan Stock Exchange (PSX), this blank-check vehicle recently went public with an IPO of PKR 250 million at par value (PKR 10 per share).
Unlike traditional IPOs, SPACs raise funds first and hunt for a target later — but in this case, LSE SPAC-I has already identified its merger partner: Ningbo Green Light Energy Limited (NGLE), a proven player in Pakistan's booming solar and renewable energy sector.
This structure offers investors indirect exposure to NGLE's growth story through a listed vehicle, potentially at a valuation discount. As Pakistan grapples with high electricity tariffs, net-metering expansion, and a surge in solar installations, this could be an intriguing play for those bullish on renewables. Below is a concise investment summary drawn from the official prospectus.
The Brief Summary (Key Investment Highlights from Prospectus) The prospectus at https://dps.psx.com.pk/download/attachment/270742-1.pdf details LSE SPAC-I Limited, Pakistan's pioneering SPAC with no current operations. It is structured for a two-phase journey:
- Raise capital via IPO and list on PSX.
- Merge with the pre-identified target — Ningbo Green Light Energy Limited (NGLE) — via a court-approved Scheme of Arrangement, effectively listing NGLE's solar business on PSX.
- IPO Details: 25 million shares at PKR 10 each (par value, no premium); 80% pre-IPO to sponsors/investors, 20% public. Fully committed/underwritten. Proceeds (~PKR 230M net) fund ~19% stake in NGLE.
- Target – NGLE: A leading solar EPC (Engineering, Procurement, Construction) firm with >300 MW installed capacity across grid-tied, off-grid, and hybrid systems. Serves residential, commercial, industrial, and agricultural clients. Strong Chinese backing (Green Light Energy Group, Ningbo) ensures competitive tech, equipment, and pricing.
- Sector Tailwinds: Pakistan's solar boom — grid tariffs soaring, net-metering >2,200 MW, panel prices falling, ~16.6 GW imports in 2024 — positions NGLE for strong demand. Revenue from EPC + some deferred payments/PPAs.
- NGLE Financials (as of June 30, 2025): Net assets ~PKR 1.43 billion; book value/share ~PKR 95.44; EPS ~PKR 12.79. Post-merger dilution brings book value to ~PKR 10.12/share and EPS to ~PKR 1.37.
- Valuation Angle: Prospectus highlights entry at PKR 10 as a discount — post-merger book value PKR 10.12, implied P/E ~10x at PKR 13.69, Gordon model ~PKR 11.33 (10% growth assumption). Effective cost post-swap ~PKR 8.37/share.
Positives for Long-Term Investors
- Direct play on Pakistan's renewable transition without startup risks — NGLE has a track record, diverse client base (including government/industrial), and supply-chain advantages from China.
- SPAC route accelerates listing for NGLE vs. a full traditional IPO.
- Lock-in periods (sponsors ≥25% for 3 years post-merger) align interests.
- Margin of safety at par pricing amid solar sector optimism (conservative 10% growth projected).
- Backed by experienced LSE Group sponsors with capital markets expertise.
Key Risks to Weigh Carefully
- SPAC Novelty: First in Pakistan — potential for low liquidity, volatility, or regulatory teething issues.
- Merger Dependency: Requires shareholder, court, and regulatory approvals; failure could trigger refunds (within 3-year window) or delays.
- NGLE-Specific: High receivables/credit risk (instalment-based sales in agri/SME), import reliance (currency volatility, supply disruptions), policy shifts (net-metering rules, duties, taxes), rising competition.
- No Operations Yet: Value hinges entirely on successful merger and NGLE execution.
- Broader Pakistan risks: economic volatility, interest rates, energy policy changes.
Bottom Line LSE SPAC-I offers a structured, prospectus-backed entry into Pakistan's fast-growing solar/renewables space at what appears to be an attractive par-price entry (with built-in discounts to projected metrics). It's not a "blind pool" gamble — the target is identified and vetted — but success depends on smooth merger execution and NGLE delivering amid sector tailwinds.
For risk-tolerant investors optimistic about solar adoption in Pakistan, this could be worth monitoring closely during subscription and post-listing. Always read the full prospectus, check latest PSX announcements (merger status as of early 2026 remains in progress/pre-IPO phase based on recent filings), and consult a financial advisor — this is not personalized advice.
What are your thoughts on Pakistan's first SPAC? Bullish on solar plays, or waiting for merger completion? Drop a comment below!
(Disclaimer: This post is for informational purposes only, based on public prospectus data. Investments carry risk; past performance or projections are no guarantee of future results.)
