Lucky Cement Ltd announced a five-for-one stock split in its notice to PSX on 21 February 2025. The recommendation was made in its Board meeting on 20 February 2025, and is subject to approval by its shareholders in an extraordinary general meeting (EoGM) on 18 March 2025. Once the stock split becomes effective, Lucky Cement Ltd's 293m ordinary shares will be multiplied by the stock split factor of five, resulting in 1465m ordinary shares. Similarly, each share's pre-split stock price will be divided by the same factor.
A company statement said, “Stock splits are a common strategy companies use worldwide to enhance market accessibility, liquidity, and investor participation. By reducing the price per share, companies make their stock more affordable to a broader range of investors, particularly small and retail investors, fostering a more inclusive shareholder base. A split also increases the number of shares in circulation, improving market liquidity and making trading more efficient without causing price volatility”.
Moreover, a stock split signals confidence in a company’s financial strength and long-term prospects, reinforcing investor trust and positioning the company for sustained success. Unlike issuing bonus shares with tax implications, stock splits provide a tax-efficient mechanism for shareholders to benefit from a company’s growth.
Ali Tabba, CEO of Lucky Cement Ltd, stated that the company and its subsidiaries have experienced significant growth. He emphasised that the stock split aims to share this success story with a broader base of investors, both locally and globally. He further highlighted that the company’s strategy of reinvesting profits into growth and expansion has consistently delivered strong results and made it more resilient to economic shocks. Rather than relying on conventional means, Lucky Cement Limited continues implementing innovative measures to enhance shareholder value.
Citing the company’s two share buybacks, he noted that shareholders who chose to retain their shares will now own a larger percentage of the company for the same initial investment, benefiting from the company's sustained growth.
Lucky Cement is one of Pakistan's largest producers and leading exporters of quality cement and is listed on the Pakistan Stock Exchange (PSX). The company has also issued Global Depository Receipts (GDRs), which are listed and traded on the Professional Securities Market of the London Stock Exchange. It has a cement production capacity of 15.3Mta nationwide.
by Abdul Rab Siddiqi, Pakistan
