United Bank Limited (PSX: UBL) has officially announced that it will reduce the face value of its shares from Rs10 to Rs5, effective from June 21, 2025. The decision, as confirmed by a notice issued by the Pakistan Stock Exchange (PSX), marks a major structural change in the bank’s equity setup, aimed at increasing share liquidity without altering the company’s total paid-up capital.
This move will double the total number of outstanding shares from 1.25 billion to 2.5 billion, effectively making UBL stock more accessible to a wider pool of investors. Despite the change in face value and share volume, the bank’s overall paid-up capital will remain unchanged, reflecting a purely nominal adjustment without impacting shareholder equity in real terms.
In anticipation of the share split, the PSX has updated the trading and settlement schedule for UBL shares. A modified settlement cycle will be applied on June 19 and June 20, 2025 — two days preceding the Book Closure (BC) date. During this period, the T+0 (same-day settlement) cycle will be in effect, ensuring quick processing before the price adjustment takes place. Once the market reopens after the Book Closure, from Monday, June 23, 2025, the standard T+2 settlement cycle will resume, with the share price adjusted accordingly.
Notably, UBL is also classified as a Deliverable Future Contract (DFC)-eligible security. As a result, the entitlement schedules for various monthly contracts including JUNB, JUL, and AUG — and their closing and settlement dates — have been revised accordingly. For example, the JUNB contract opened on April 21, 2025, will close on June 17 and settle on June 19, maintaining entitlement eligibility. Similarly, the JUL and AUG contracts follow the same pattern with matching timelines for settlement.
Meanwhile, contracts opened later, such as JUNC, JULB, and AUGB — all beginning on June 16 — will not carry entitlement. These trades will be conducted on an ex-benefit basis. An overlapping period exists between June 16 and June 17, creating a two-day window when both entitlement and ex-benefit contracts will be actively traded.
Following the implementation of the face value adjustment, the opening price of UBL shares on June 23 will be revised to exactly half of the closing price on June 20. This recalibration will reflect the revised nominal value while ensuring that shareholder value remains unaffected in percentage terms.
Market analysts expect this share split to stimulate trading activity in UBL stock by enhancing affordability and participation. The strategy aligns with common corporate practices where companies split shares to improve liquidity, facilitate easier trading for retail investors, and bring their stock price within a more optimal range.
With United Bank Limited being one of the leading financial institutions in Pakistan, the move signals a calculated step to modernize its capital structure and potentially deepen investor engagement. The revised trading framework and clear entitlement guidelines are expected to ensure a smooth transition for all market participants.