The board of directors of Adamjee Insurance Company Limited (PSX: AICL) has approved the divestment of 16.25 million shares — representing 6.5% of the paid-up capital — in its subsidiary, Adamjee Life Assurance Company Limited (PSX: ALIFE).
The stake sale is aimed at meeting the Pakistan Stock Exchange’s free-float requirement under Clause 5.4.1 of the PSX Regulations, which mandates that a minimum portion of a listed company’s shares remain publicly tradable to ensure market liquidity and transparency.
According to the stock filing, the sale will be executed through off-market trades via the PSX Portal in tranches over the coming weeks. Upon completion, AICL’s direct holding in Adamjee Life will reduce from 225 million shares (90%) to 208.75 million shares (83.5%).
Despite the reduction, Adamjee Life will remain a subsidiary of Adamjee Insurance and will continue to be consolidated in the group’s financial statements under prevailing accounting standards.
The move is expected to increase the float of ALIFE shares available for public trading, a step often seen as positive for improving investor access and enhancing the stock’s market performance.
The Pakistan Stock Exchange has been formally notified, while the Securities and Exchange Commission of Pakistan (SECP) has also been copied on the disclosure in accordance with regulatory norms.
Adamjee Life, one of Pakistan’s prominent life insurance providers, was listed on the PSX in September 2023 following its initial public offering. The company is part of the Nishat Group, which has interests spanning textiles, banking, insurance, and power.
