Loads Limited’s board has approved plans to raise up to Rs1.5 billion through a potential right issue of ordinary shares to meet working capital and expansion needs.
The listed company, which manufactures automotive parts, disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.
“The Board of Directors resolved that the company intends, in the near future, to potentially carry out a right issue of ordinary shares.
“The aggregate amount of the potential right issue may, if deemed fit by the Board at the relevant time, be up to Rs1.5 billion, which, if the company proceeds to announce, are intended to be issued at a price not exceeding Rs12.5 per share, the proceeds of which are intended to primarily be utilized for, inter alia, meeting working capital requirements, including-but not limited to cater the potential growth requirements of local and export markets, and/or such other purposes as ultimately determined by the Board of Directors,” read the notice.
The Board further resolved that it may approve and announce the actual right issue at a future date in accordance with the applicable laws, as it deems fit.
Loads Limited was incorporated in Pakistan as a private limited company in 1979 and was later converted into a public limited company in 1994. The company manufactures and sells radiators, exhaust systems, sheet metal components, and other parts for the automobile industry.
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