Pace (Pakistan) Limited has reached a major regulatory milestone in its financial restructuring efforts after receiving formal approval from the Securities and Exchange Commission of Pakistan to issue 140.16 million ordinary shares. In a notification submitted to the Pakistan Stock Exchange on Friday, the company revealed that these shares will be issued at a discounted price of 9 rupees per share. The total value of this issuance is estimated at approximately 1.26 billion rupees, representing a significant movement in the company’s capital structure and a strategic step toward cleaning up its balance sheet.
This regulatory nod from the SECP follows a clear mandate from the company’s stakeholders. The approval was granted based on special resolutions that were passed by shareholders during an extraordinary general meeting held on September 24, 2025. By securing this consent, the management has been empowered to move forward with a non-traditional issuance aimed at stabilizing the firm’s long-term fiscal health. The decision highlights the company’s focus on addressing its financial obligations through equity rather than further depleting its liquid cash reserves.
The mechanism for this share issuance is notable as it bypasses the standard rights offer route. Instead, Pace Pakistan will issue these shares to specific individuals and undertakings in exchange for non-cash consideration. According to the company’s disclosure, this process involves the conversion of long-outstanding term finance certificates and various other financial liabilities. By converting these debts into equity under Section 83(1)(b) of the Companies Act, 2017, the company effectively reduces its interest-bearing burdens and strengthens its equity base, a move often favored by firms looking to pivot toward growth.
Beyond the conversion of financial certificates, the issuance also includes provisions for the settlement of property assets. This comprehensive restructuring is being carried out in strict accordance with the Companies (Further Issue of Shares) Regulations, 2020. This multi-faceted approach allows the company to settle its diverse liabilities with creditors who are willing to take an equity stake in the business’s future performance. It reflects a trend in the local corporate sector where distressed or maturing debt is managed through strategic equity swaps to maintain operational continuity.
To ensure market stability and prevent immediate sell-offs, the disclosure clarified that the newly issued shares will be subject to a six-month lock-in period. This restriction is in compliance with the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017. By imposing this holding period, the regulatory framework ensures that the influx of new shares does not cause undue volatility in the trading price on the PSX. For investors and market participants, this move signals a period of consolidation for Pace Pakistan as it works to align its asset portfolio with its outstanding financial commitments.
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