Thatta Cement Company Limited has announced plans to sub-divide its ordinary shares, reducing the face value from Rs 10 per share to Rs 2 per share with a split ratio of 5:1, according to a filing by the company at the Pakistan Stock Exchange (PSX) on Friday.
“The Board has recommended the sub-division of the Company’s ordinary shares by reducing the face value from Rs. 10/- to Rs. 2/- per share, in accordance with Section 85(1)(c) of the Companies Act, 2017. This implies a stock split in the ratio of 5 shares for every 1 share held,” read the company’s notice.
The move is aimed at making the shares more accessible to retail investors and increasing market liquidity, according to a statement released by the company. The company’s board has recommended that shareholders approve the resolution at the upcoming Extraordinary General Meeting (EGOM), scheduled for May 29, 2025.
In line with the proposed stock split, the company’s existing capital, comprising 99,718,125 ordinary shares of Rs 10 each, will be restructured into 498,590,625 shares of Rs 2 each. Shareholders will receive 5 new shares for each share held, effective at a date to be determined after the EGOM.
The board has also recommended amendments to the company’s Memorandum and Articles of Association to reflect this change. The decision is expected to enhance the company’s market presence and promote long-term growth by broadening the investor base.
The company further announced that its share transfer books will remain closed from May 22 to May 29, 2025. Shareholders are urged to ensure their shares are registered by May 21 to attend and vote at the meeting.
Thatta Cement’s move is seen as part of a broader strategy to strengthen its position in the equity market and attract more investments.
