⚡ Flash Summary

Loads Limited’s board has resolved to potentially undertake a rights issue of ordinary shares. The aggregate amount could reach up to PKR 1,500,000,000. The issue price will not exceed PKR 12.5 per share. The proceeds are intended for working capital needs, including growth in local and export markets.

📌 Key Takeaways

• 💰 Loads Limited is considering a rights issue of ordinary shares.
• 📈 The potential aggregate amount is up to PKR 1,500,000,000.
• 💲 The issue price is capped at PKR 12.5 per share.
• 💼 Proceeds will primarily address working capital requirements.
• 🌍 Funds aim to support growth in local and export markets.
• ✅ The board has resolved to consider the rights issue.
• 🗓️ The actual right issue may be approved and announced at a future date.
• 📜 The decision aligns with Sections 96 and 131 of the Securities Act, 2015.
• 🤝 Shareholders, particularly associated concerns, may invest in the rights issue.
• 🏢 The board will determine the ultimate use of funds.
• 📢 TRE Certificate Holders of the Exchange will be informed accordingly.

🎯 Investment Thesis

HOLD. The potential rights issue introduces uncertainty. While the funds could support growth, it also dilutes existing shareholders. Investors should monitor the company’s financial performance and the terms of the rights issue before making any investment decisions. The price target is dependent on the final structure of the right issue, and operational performance following.