Karachi: United Bank Limited (UBL) has announced a stock split, altering the face value of its shares from PKR 10 to PKR 5, effective June 21, 2025. The announcement, made via a letter dated June 3, 2025, was notified through the Pakistan Stock Exchange (PSX) website. This change is set to affect the trading and settlement schedules for UBL shares in the upcoming weeks.

Trading in UBL shares will undergo a modified settlement cycle on June 19 and June 20, 2025, with transactions processed on a T+0 basis due to the stock split. However, from June 23, 2025, the settlement cycle will revert to the standard T+2 schedule with an adjusted price. The opening price on June 23, 2025, will be half of the closing price of June 20, 2025, as the total number of UBL shares will double from 1,252,123,875 to 2,504,247,750, while the company's paid-up capital remains unchanged.

According to information available from the Pakistan Stock Exchange (PSX), UBL is also classified as a DFC eligible security, and its trading schedule has been adjusted accordingly. The trading and settlement for contracts with entitlement, such as JUNB, JUL, and AUG, will conclude on June 19, 2025. For contracts without entitlement, namely JUNC, JULB, and AUGB, trades occurring from June 16 to June 17, 2025, will not be eligible for entitlement and will be conducted on an ex-benefit basis.

The procedural document for the stock split, detailed in Annexure "A," outlines the framework for managing trading and settlement activities during this period. The guidelines aim to ensure clarity and consistency, addressing changes in both the Ready and Futures Markets.

The alteration in trading mechanisms will see cum-benefit transactions executed on a T+0 basis during the book closure period, with a return to T+2 settlement beginning on June 23, 2025. Futures market contracts will face pre-maturation, with existing DFC contracts split a week before the book closure date, maintaining an overlapping period of at least two days.

Collateral valuation for securities pledged against collateral or RF will continue at the market price until the book closure date. The pledging facility will be unavailable on June 23, 2025, but will resume the following day.

The book closure date is set for June 21, 2025, a Saturday, ensuring a single-day transition. This strategic move by UBL aims to enhance liquidity and investor participation in the market, reflecting evolving trading dynamics in the designated market category.