KARACHI: Waves Home Appliances Limited has announced a major rights issue worth approximately PKR 1.5 billion as the company moves to strengthen its financial position, expand its product portfolio, and support long-term business growth. The decision was approved by the company’s Board of Directors during its meeting held on July 23, 2026.
Under the approved plan, Waves Home Appliances will issue 150,015,772 ordinary right shares with a face value of PKR 10 per share, offered at par without any premium. Existing shareholders will be entitled to 56 right shares for every 100 ordinary shares held, representing a 56% increase in the company’s existing paid-up capital.
The company stated that the rights issue is intended to reinforce its balance sheet while providing additional capital to support medium-term operational and strategic objectives. According to the disclosure, approximately PKR 800.16 million, or 53.3% of the proceeds, will be allocated toward working capital requirements, expansion in the air conditioner segment, continued investment in deep freezer and refrigerator businesses, and reducing reliance on bank borrowings. The remaining PKR 700 million, or 46.7%, will be used to partially repay loans owed to the company’s holding company, Waves Corporation Limited.
Waves Home Appliances believes the additional capital will improve liquidity, lower financing costs, optimize its capital structure, and enhance its ability to pursue future business opportunities. The company also expects the move to strengthen shareholder value by supporting sustainable long-term growth.
The company acknowledged that the rights issue could face the risk of undersubscription because the issue price is set at par, which is higher than the prevailing market price. However, it disclosed that its substantial shareholders and directors have committed to subscribing to their respective entitlements, while the holding company has also agreed—subject to regulatory approvals—to subscribe to any unsubscribed shares beyond its entitlement if required.
Waves Home Appliances further clarified that although the issue price exceeds the current market price, the Board considers the PKR 10 per share price to be fair based on the company’s break-up value, discounted cash flow valuation, and long-term business prospects.
The company added that the dates for the closure of the share transfer books to determine shareholders’ entitlement for the rights issue will be announced separately after the offer document is finalized in accordance with applicable regulations.
