The regulatory framework for Special Purpose Acquisition Companies (SPACs) in Pakistan was introduced by the Securities and Exchange Commission of Pakistan (SECP) through amendments to the Public Offering Regulations 2017 in September 2021. This framework aims to facilitate capital formation, encourage new listings on the Pakistan Stock Exchange (PSX), and provide an alternative route for private companies to access public markets through mergers or acquisitions.

LSE SPAC-I Limited was incorporated on 20th March, 2025 as the first company of this kind in Pakistan. The Company aims to raise capital through an IPO with Listing at Pakistan Stock Exchange, for the sole purpose of acquiring or merging with an existing company.

Not less than 90% of the funds raised through IPO shall be kept in escrow account for acquiring the target company. Remaining 10%, can be used by the SPAC to defray expenses relating to IPO, operating cost, fund the search for a target business and complete the qualifying acquisition.

After completion of merger/acquisition transaction SPAC shareholders will get shares of merged entity and SPAC shall ceased to exist by undergoing voluntary winding-up. The merged entity shall be listed on PSX.

In case SPAC is unable to find the target company and complete merger transaction within permitted 36 months from the date of listing or such extended time period granted by SECP, the shareholders will be refunded from the escrow account on pro-rata basis including profit, if any, earned thereon through permitted investments (net of taxes) and SPAC shall be delisted and undergo voluntary winding-up.