Arif Habib Corporation Limited (PSX: AHCL) has announced a stock split thereby reducing the face value of its shares from Rs. 10 to Re. 1 to improve market liquidity and investor accessibility.
The company’s subscribed and paid-up capital, currently consisting of 421.7 million shares of Rs. 10 each, will be restructured into 4.2 billion shares of Re. 1 each, without affecting the total paid-up capital.
Shareholders will receive 10 shares of Re. 1 for every one share of Rs. 10 they hold as of a yet-to-be-announced effective date, subject to regulatory approvals in accordance with Section 85(1)(c) of the Companies Act, 2017.
To finalize the move, AHCL’s Board has scheduled an Extra-Ordinary General Meeting (EOGM) on March 19, 2025, where shareholders will consider and approve the proposal. The announcement was made in the company’s financial results for the first half of FY25.
AHCL also announced its financial result for the six-month period ended December 31, 2024, reporting robust profitability driven by strategic investments and higher returns. The Company recorded a Rs. profit after tax (attributable to equity holders) of Rs. 5,986 million, compared to Rs. 5,431 million (restated) in the same period last year, translating into earnings per share (EPS) of Rs. 14.66, up from Rs. 13.30 (restated).
On an unconsolidated basis, AHCL posted a profit after tax of Rs. 15,157 million, with an EPS of Rs. 35.94, compared to Rs. 4,519 million (restated) and an EPS of PKR 10.72 (restated) in the previous year. The strong performance was driven by higher dividend income, remeasurement gains on investments, and strategic portfolio management.
In a strategic move to enhance market liquidity and investor accessibility, the Board of Directors has proposed a 10-for-1 stock split, changing the face value of shares from Rs. 10 to Rs. 1. As a result, the total number of issued shares will increase from 421,696,747 to 4,216,967,470, while the total paid-up capital remains unchanged.
Shareholders will receive 10 shares of Re. 1 each for every one share of Rs. 10 held as of the effective date, which will be announced after obtaining regulatory approvals. To formalize this decision, an Extraordinary General Meeting (EGM) is scheduled for March 19, 2025, where shareholders will vote on the proposal through a special resolution.
Commenting on the results and the proposed stock split, Arif Habib, CEO, AHCL, stated: “We are pleased to report another period of strong financial performance, reflecting our strategic investment approach and disciplined portfolio management. The proposed stock split aligns with our commitment to improving stock liquidity, making AHCL shares more accessible to a broader investor base while maintaining shareholder value. We remain focused on delivering sustainable long-term returns and strengthening our position in the financial markets.”