Islamabad, Feb 21: Lucky Cement Limited (PSX: LUCK) has announced a 5-for-1 stock split, as per its notification to the Pakistan Stock Exchange (PSX) on February 21, 2025. This decision, made during the Board of Directors meeting on February 20, 2025, is subject to shareholder approval at an Extraordinary General Meeting (EoGM) scheduled for March 18, 2025.
Once the stock split takes effect, the company’s existing 293 million ordinary shares will expand to 1,465 million shares, multiplying the share count by a factor of five. Consequently, the share price will be adjusted accordingly, maintaining the overall market capitalization of the company.
Stock splits are a widely adopted strategy to enhance share affordability, improve market liquidity, and attract a broader investor base. By reducing the per-share price, companies make their stock more accessible to retail investors, increasing participation and diversifying ownership. Additionally, a higher number of shares in circulation leads to improved liquidity, making trading smoother and reducing price fluctuations.
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Beyond market mechanics, a stock split often reflects a company’s confidence in its financial stability and future growth. Unlike bonus shares, which can have tax implications, stock splits are a tax-neutral way for investors to benefit from a company’s progress while fostering long-term shareholder engagement.
CEO of Lucky Cement Limited, M. Ali Tabba, emphasized that the company, along with its subsidiaries, has seen remarkable growth over the years. He highlighted that the stock split aligns with the company’s commitment to sharing its success with a wider investor base, both domestically and internationally. Lucky Cement’s strategy of reinvesting earnings into expansion has strengthened its resilience, ensuring sustained profitability despite economic fluctuations.
Tabba also pointed out that previous share buybacks had already increased the ownership percentage for long-term shareholders who retained their investments. This stock split further enhances shareholder value by making the company’s shares more accessible, reinforcing confidence in its market position.
By implementing forward-thinking financial strategies, Lucky Cement continues to position itself as a leader in the cement industry. The move is expected to encourage more investors to participate in the company’s growth journey, reinforcing its reputation as a robust and innovative market player.
