Karachi: Power Cement Limited has successfully converted 60.73 million voting, cumulative, convertible preference shares into 80.97 million ordinary shares, in a process aligning with the provisions outlined in the company's Articles of Association and a special resolution passed on June 20, 2020. This conversion took place over a period from July 18, 2024, to March 18, 2025.

The statutory auditors of Power Cement Limited verified the conversion process, confirming that the company adhered to all relevant regulatory requirements. The conversion was carried out without any payment to preference shareholders, as the cancellation of preference shares resulted in the issuance of ordinary shares recorded in the name of the Central Depository Company (CDC).

According to the company's records, the number of shares outstanding saw significant changes during the conversion period. On July 18, 2024, before the conversion began, the company had 1.11 billion ordinary shares and 208.13 million preference shares. By March 18, 2025, these numbers had changed to 1.19 billion ordinary shares and 147.40 million preference shares.

The conversion process was conducted in several stages, with notable conversions occurring on October 17, 2024, November 8, 2024, December 27, 2024, January 27, 2025, February 20, 2025, and March 18, 2025. The largest conversion occurred between October 17, 2024, and November 8, 2024, when 78.27 million ordinary shares were issued in exchange for 58.70 million preference shares.

According to information available from the Pakistan Stock Exchange (PSX), Power Cement Limited's conversion of preference shares complies with the procedures for partial cancellation of securities in the Central Depository System (CDS) due to redemption or conversion. This move reflects the company's commitment to adhering to its governance framework and shareholder-approved terms.

The conversion process involved thorough verification, including the review of calculations, cancellation confirmation letters filed with the CDC, and CDC's transactional statements for both ordinary and preference shares during the conversion period. The process also included confirmation from the Joint Registrar of Companies on the certified true copies of Form 3 - Return of Allotment.

The conversion of shares at Power Cement Limited marks a significant event in the designated market category, reflecting a strategic shift in its shareholding structure to align with the company's long-term objectives.