KARACHI – United Bank Limited (PSX: UBL) will implement a 2-for-1 stock split, reducing the face value of its shares from Rs10 to Rs5, effective June 21, 2025, according to a notice issued by the Pakistan Stock Exchange (PSX).
As part of this corporate action, trading in UBL shares will follow a modified same-day settlement cycle (T+0) on June 19 and 20 (Thursday and Friday), the two trading days immediately prior to the book closure. From Monday, June 23, normal T+2 settlement will resume with the share price adjusted accordingly.
Following the stock split, the number of UBL shares will double from 1.25 billion to 2.5 billion. However, the bank’s paid-up capital will remain unchanged, as the move only affects the per-share face value and not the company’s overall equity.
The PSX further clarified that the opening price of UBL shares on June 23 will be half of the closing price on June 20 to reflect the new face value of Rs5.
Since UBL is also a Deliverable Future Contract (DFC)-eligible security, the entitlement-based trading and settlement schedule will apply. Contracts closing on or before June 17 (such as JUNB, JUL, and AUG) will be eligible for the benefit, while those opening from June 16 onwards (JUNC, JULB, AUGB) will trade on an ex-benefit basis. The overlap period between the two contract sets is June 16–17, during which investors should take care regarding entitlement eligibility.
This split is primarily aimed at improving liquidity by making the share more affordable for a wider base of retail investors, though the bank’s fundamentals remain unchanged.
