Pakistan has completed its first-ever Special Purpose Acquisition Company (SPAC) transaction, allowing a solar energy company to join the Pakistan Stock Exchange (PSX) Main Board through a merger with LSE SPAC-I Limited.
The merger between LSE SPAC-I and Ningbo Green Light Energy Limited was completed under a Scheme of Arrangement sanctioned by the Lahore High Court on September 30, 2026.
The transaction marks Pakistan’s first successful SPAC deal and introduces an alternative route for private companies to enter the country’s public capital market.
The newly listed company operates in the renewable energy sector. Its business includes solar engineering, procurement and construction (EPC), system integration, and operations and maintenance services.
PSX Director Ahmed Chinoy called the transaction an important development for Pakistan’s capital market. He said it could set a precedent for future SPAC deals, improve businesses’ access to public financing, support renewable energy development and strengthen Pakistan-China economic ties.
Ningbo Green Light Energy CEO Muhammad Qasim said the listing would give the company a platform to pursue its expansion plans.
Meanwhile, Technology Director Cheng Quan highlighted the importance of combining international expertise with local engineering capabilities.
LSE Capital CEO Aftab Ahmad Chaudhry said the successful transaction demonstrated that the SPAC model could work in Pakistan and provide businesses with another way to access public markets.
How SPAC Deals Work
A Special Purpose Acquisition Company (SPAC) is a company formed specifically to raise funds through an initial public offering (IPO) and subsequently acquire or merge with an existing private business.
Unlike a conventional IPO, in which an operating company directly offers its shares to the public, a SPAC initially lists as a shell company without major business operations. It raises money from investors and later identifies a private company for a merger or acquisition.
Once the transaction is completed, the private business effectively becomes publicly listed through the SPAC.
Pakistan’s Securities and Exchange Commission (SECP) introduced a regulatory framework for SPACs in 2021 to provide businesses with an alternative route to the stock market.
The framework includes investor protection measures, including a requirement to keep at least 90 percent of IPO proceeds in an escrow account. It also requires shareholder approval for mergers and provides redemption rights to investors who oppose a proposed transaction.
For the PSX, the first completed SPAC transaction provides a working example of the framework and could encourage more companies to consider alternative listing routes.
However, the model’s long-term success will depend on transparent valuations, proper disclosures and investor confidence.
