United Bank Limited (UBL) has announced that the State Bank of Pakistan (SBP) has granted its “No Objection” to the proposed subdivision of the bank’s existing share capital. This approval, received through a letter dated May 21, 2025, permits UBL to amend its Memorandum and Articles of Association in accordance with the shareholders’ resolution.
The subdivision involves splitting each existing ordinary share of face value PKR 10 into two ordinary shares of face value PKR 5 each. The bank clarified that this subdivision does not affect any rights, privileges, or entitlements attached to the shares.
UBL had previously informed the Pakistan Stock Exchange (PSX) on May 16, 2025, about the shareholders’ approval of this capital restructuring, which was contingent upon SBP’s approval. Following the receipt of the No Objection certificate from SBP, the bank has committed to keeping the Exchange informed of any further material developments regarding this matter.
This kind of subdivision primarily aims to enhance the liquidity and marketability of the bank’s shares. By doubling the number of shares outstanding and lowering the individual share price, the shares may become more affordable and attractive to a wider range of investors, potentially increasing trading volume on the stock exchange. This can improve the stock’s accessibility and appeal, helping to stimulate demand and possibly supporting a more active and vibrant market for UBL shares.
The disclosure was made official through a letter signed by Aqeel Ahmed Nasir, Company Secretary and Chief Legal Counsel of United Bank Limited, dated May 23, 2025. The communication has also been shared with the Securities and Exchange Commission of Pakistan and the London Stock Exchange.
