Bullish indicating open at $55-$60, IPO prices at $37
ISLAMABAD - United Bank Limited (UBL) has received approval from the State Bank of Pakistan (SBP) for the subdivision of its share capital, the company’s Secretary Department announced today. The approval, dated May 21, 2025, allows UBL to proceed with the amendments to its Memorandum and Articles of Association, reflecting the subdivision of its shares.
The bank previously disclosed on May 16, 2025, that its shareholders had approved a resolution to subdivide each ordinary share of face value PKR 10 into two ordinary shares of face value PKR 5. This move is not expected to change any rights, privileges, or entitlements of the shares.
The SBP’s "No Objection" letter paves the way for UBL to implement the shareholders’ resolution, which was contingent on the central bank’s approval. The company has committed to keeping the Pakistan Stock Exchange informed of any further material developments regarding this matter.
The subdivision of share capital is a common practice in the financial industry, often undertaken to increase the liquidity of shares in the market or to make stock ownership more accessible to a broader range of investors. However, it does not inherently affect the company’s valuation or the total value of shareholders’ investments.
This corporate action by UBL is part of regular financial processes and does not indicate any change in the bank’s operational performance or strategy. Shareholders and potential investors are encouraged to follow the bank’s communications for further updates.
The information about UBL’s share subdivision and SBP’s approval is based on a press release statement from the company.
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