Arif Habib Corporation Proposes Share Split
With a 10.12% increase in consolidated after-tax profit and a strong focus on efficiency and growth, AHCL is poised to benefit from Pakistan's improving economic environment, offering investors a promising opportunity for long-term growth and returns.
Arif Habib Corporation Limited (AHCL) has proposed a share split to enhance market liquidity and investor accessibility, with the company's Board of Directors suggesting subdividing shares from Rs10 to Rs1, restructuring 421.69 million ordinary shares into 4.21 billion.
The proposed share split will result in shareholders receiving 10 new shares for every 1 old share, with an Extra-Ordinary General Meeting scheduled for March 19, 2025, to approve the resolution. AHCL has reported a consolidated profit after tax of Rs5.9 billion, up from Rs5.4 billion last year, with earnings per share (EPS) at Rs14.66. The company's subsidiaries and associates showed mixed results, with some experiencing significant growth.
AHCL's strong performance was driven by higher dividend income, remeasurement gains on investments, and strategic portfolio management. The company is well-positioned to benefit from Pakistan's improving economic environment, with a strong focus on efficiency and growth. On an unconsolidated basis, AHCL posted a profit after tax of Rs 15,157 million, with an EPS of Rs 35.94.
In related news, the initial public offering (IPO) of Barkat Frisian, a joint venture between Frisian Egg Group and Buksh Group, was oversubscribed by 16.25 times, with a strike price of Rs18.2 per share, 40% higher than the floor price of Rs13. The IPO was managed by Arif Habib Ltd, with investor demand reaching Rs14.25bn against the book-building size of Rs1.23bn.
The proposed share split and strong financial performance demonstrate AHCL's commitment to enhancing shareholder value and driving growth, making it an attractive investment opportunity in the Pakistani market.
