Karachi: Invest Capital Investment Bank Limited (ICIBL) has scheduled an Extraordinary General Meeting (EOGM) for September 26, 2024, in Karachi, with options for online attendance via video link. This meeting, announced on September 5, 2024, aims to address significant changes in the bank's financial structure.
According to information available from the Pakistan Stock Exchange (PSX), the primary agenda for this EOGM is the proposed reduction of the bank’s ordinary share capital by Rs. 2,418,139,120. This reduction involves the cancellation of 241,813,912 ordinary shares to adjust for accumulated losses and a negative capital reserve resulting from amalgamation, as detailed in the statement of material facts required under Section 134(3) of the Companies Act, 2017.
This strategic move aims to eliminate the bank’s accumulated losses, which stood at Rs. 509.39 million as of June 30, 2023, and a negative amalgamation capital reserve of Rs. 2,022.08 million. The reduction is expected to enhance the book value per share, thus improving market value and earnings per share, which could lead to a better dividend payout ratio. Additionally, the adjustment will reduce the bank’s expense liabilities tied to its paid-up capital amount.
The EOGM will also include provisions for electronic voting from September 23 to 25, 2024, and postal voting for shareholders unable to attend online or in person. Detailed procedures for both voting methods have been outlined, ensuring shareholders can exercise their voting rights effectively.
Shareholders and proxy holders must comply with specific registration and identity verification procedures to participate or vote in the meeting. This includes submitting necessary documents by designated deadlines, particularly for proxy appointments, which are due 48 hours before the meeting starts.
All related documents are available for inspection at the company's registered office during business hours up to the day before the EOGM. This includes a detailed explanation of the terms and effects of the proposed share capital reduction and legal conditions under the supervision of the Hon'ble High Court of Sindh at Karachi, which must confirm the reduction for it to proceed.
The proposed resolution, requiring a special majority, reflects the company's efforts to stabilize its financial footing and return value to its shareholders amid challenging market conditions.