The State Bank of Pakistan (SBP) has granted its no-objection to United Bank Limited (PSX: UBL) for the subdivision of its shares.
According to a stock filing on Friday, UBL confirmed that the SBP issued its formal approval via a letter dated May 21, 2025, allowing the necessary amendments to the bank’s Memorandum and Articles of Association.
The share subdivision, initially approved by UBL shareholders on May 16, 2025, involves splitting each ordinary share of Rs. 10 face value into two ordinary shares of Rs. 5 each. The bank clarified that this move will not affect any rights, privileges, or entitlements attached to the shares.
The restructuring is aimed at increasing share liquidity and making the stock more accessible to a broader range of investors. UBL is now expected to proceed with the formal implementation of the revised share structure following the central bank’s clearance.
Apart from fall of EPS so existing shareholders will get lesser return per share.