Waves Home Appliances plans Rs1.5bn right issue to fund expansion, repay loan
Waves Home Appliances (WAVESAPP) plans to raise over Rs1.5 billion through a rights issue to expand its AC segment and partially repay a high-cost liability owed to its holding company. According to the company’s rights issue documents, Waves will issue 150.02 million new ordinary shares at Rs10 per share, for an aggregate of Rs1.5 billion. The issue will be offered to existing shareholders at…
Waves Home Appliances plans to raise over Rs1.5 billion through a rights issue, with the funds intended for expanding its air conditioning segment and partially repaying a high-cost loan to its holding company. The rights issue, priced at Rs10 per share, will issue 150.02 million new ordinary shares, representing 56% of the company's existing share capital.
Existing shareholders are entitled to receive 56 right shares for every 100 ordinary shares they hold. The rights issue will be managed by Bank Makramah Limited. The proceeds from the rights issue will be used to strengthen the company's financial position, support its medium-term operational and growth objectives, and reduce reliance on bank borrowings.
Up to Rs800.16 million, or 53.3% of the proceeds, will be utilized to meet working capital requirements, while Rs700 million, or 46.7% of the proceeds, will be used for partial repayment of the loan to the holding company. Waves Home Appliances, formerly known as Samin Textiles Limited, has been operating in Pakistan since 1989 and manufactures and distributes various domestic consumer appliances and light engineering products.
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