LSE Financial shareholders approve 10-for-1 stock split, ₨100 million SPAC investment plan

Shareholders of LSE Financial Services Limited (LSEFSL) have approved a 10-for-1 stock split and authorised the company to invest up to ₨100 million in upcoming Special Purpose Acquisition Companies (SPACs) at the pre-IPO stage during an Extraordinary General Meeting (EOGM) held on June 9, 2026.

According to a notice submitted to the Pakistan Stock Exchange (PSX) on Tuesday, the resolutions were unanimously approved by shareholders at the meeting held at the company's registered office in Lahore.

As part of the approved stock split, shareholders authorised the subdivision of the company's capital by reducing the nominal value of each share from ₨10 to ₨1.

Under the resolution passed pursuant to Section 85 of the Companies Act, 2017, the company's authorised capital will remain unchanged at ₨429 million but will be divided into 429 million ordinary shares of ₨1 each, compared to the existing structure of 42.9 million ordinary shares of ₨10 each.

The shareholders also authorised the Company Secretary to amend the Memorandum of Association and Articles of Association to implement the subdivision and make corresponding changes to the issued capital.

In addition, the Board of Directors was empowered to determine entitlement and book closure dates, either through a board meeting or by circulation, to implement the stock split.

The EOGM also approved amendments to Clause 6 of both the Memorandum of Association and Articles of Association to reflect the revised capital structure. The amended clauses state that the company's capital consists of ₨429 million divided into 429 million shares of ₨1 each and provide authority to increase, reduce or reorganise capital, including the issuance of ordinary and preference shares.

Shareholders further ratified the investment and financing approvals granted at the previous annual general meeting relating to associated companies and related parties. Under those approvals, investments through equity, rights subscriptions or initial capital contributions may not exceed ₨600 million, while financing, advances or loans must carry a minimum return equivalent to six-month KIBOR plus 1%.

The resolution also requires that any disposal of existing investments in associated companies must be undertaken at market value or at a value certified by a chartered accountant firm.

In a separate special resolution, shareholders authorised the board, under Section 199 of the Companies Act, 2017, to invest up to ₨100 million in any upcoming SPAC through a pre-IPO investment for eventual listing on the Pakistan Stock Exchange.

The company said the approval would provide flexibility to participate in future capital market opportunities through SPAC structures.

Shareholders also approved enabling resolutions authorising the Chief Executive Officer and/or Company Secretary, jointly or individually, to undertake all necessary actions, execute documents and agreements, and complete procedural requirements required to implement the resolutions approved at the EOGM.

The meeting also confirmed the minutes of the company's Annual General Meeting held on November 27, 2025.