United Bank Limited (PSX: UBL), one of Pakistan’s largest and most prominent financial institutions, has received official clearance from the State Bank of Pakistan (SBP) to proceed with a proposed share subdivision. This strategic move is aimed at increasing stock liquidity and enhancing accessibility for a wider pool of investors.
According to a notification submitted to the Pakistan Stock Exchange, the SBP issued a formal no-objection letter dated May 21, 2025, granting approval for necessary amendments to UBL’s Memorandum and Articles of Association. This regulatory green light follows an earlier shareholder meeting on May 16, 2025, during which investors approved the share split proposal.
The approved subdivision entails dividing each existing ordinary share of Rs. 10 face value into two ordinary shares of Rs. 5 each. This means shareholders will receive twice the number of shares while the overall value of their holdings remains unchanged. Importantly, UBL has clarified that this restructuring will not affect any existing rights, privileges, or entitlements attached to the original shares.
This move is part of UBL’s broader strategy to improve the tradability of its shares on the stock exchange. By lowering the face value per share, the bank aims to attract increased participation from retail investors who may have previously found the stock’s price point prohibitive. Enhanced liquidity often results in more active trading, improved price discovery, and greater appeal among institutional and individual investors alike.
In a highly competitive banking landscape, UBL’s decision to optimize its capital structure through a share split signals confidence in its long-term growth and investor engagement strategy. With over seven decades of banking legacy, the bank continues to position itself as a forward-looking institution committed to innovation and value creation.
UBL’s leadership has consistently focused on aligning corporate actions with market expectations and shareholder interests. The share split is expected to serve as a catalyst for strengthening market perception and increasing the stock’s appeal to a broader demographic. Market analysts have noted that such moves often result in increased investor activity, particularly among those seeking more affordable entry points into high-performing blue-chip stocks.
The formal implementation of the revised share structure will proceed in the coming weeks, following the necessary procedural steps and notifications to relevant authorities. Market participants and stakeholders are closely watching this development, anticipating increased activity around UBL shares as the split takes effect.
With the SBP’s approval now secured, UBL is poised to move forward with its plan, potentially setting a precedent for other financial institutions in Pakistan to adopt similar measures aimed at improving stock market participation and overall market depth.
This development underscores the role of regulatory facilitation in encouraging corporate restructuring that aligns with investor interests and capital market growth. As UBL embarks on this new chapter, the focus remains on sustainable banking, digital transformation, and robust governance—key pillars supporting its continued leadership in Pakistan’s modern banking sector.