Systems Limited, one of Pakistan’s leading software companies, has made significant announcements regarding both its stock structure and international expansion plans. On March 24, 2025, the company informed the Pakistan Stock Exchange about a proposal to subdivide its equity shares in a move that is expected to enhance liquidity and make the stock more accessible to a broader range of investors.
The company’s Board of Directors (BoD) met on March 21, 2025, and approved the proposal to reduce the face value of each share from Rs10 to Rs2, following a 5-for-1 stock split ratio. As a result, Systems Limited’s total number of shares will increase significantly from 292.9 million to 1.46 billion shares. The move is aligned with Section 85(1)(c) of the Companies Act, 2017, and is subject to shareholder approval.
This decision is expected to make the shares more affordable for individual investors, thereby improving market liquidity and attracting more investment. According to Arif Habib Limited (AHL), this adjustment is part of the company’s broader strategy to make its stock more accessible and enhance overall market participation.
At the time of the announcement, the company’s stock closed at Rs571.72, reflecting a slight decrease of Rs8.33 or 1.44% from the previous session. Despite this minor decline in stock value, the stock split is likely to attract more interest from investors by increasing the number of shares available in the market.
In terms of financial performance, Systems Limited reported a profit-after-tax (PAT) of Rs7.46 billion for the year 2024, showing a decline of over 14% compared to the PAT of Rs8.69 billion in 2023. Despite this decrease in profits, the company remains optimistic about its future growth prospects, particularly in the international market.
In another key development, Systems Limited has announced its plans to double its investments in Saudi Arabia, signaling its commitment to expanding its footprint in the region. Saudi Arabia presents a significant growth opportunity for the company, as it is expected to scale 3-5 times compared to the UAE market. The country’s growing demand across various sectors, coupled with its alignment with Systems Limited’s expertise in software development, positions the company for further growth in the region.
The Saudi government’s substantial investment in Artificial Intelligence (AI), including a $100 billion AI fund, further enhances the opportunity for Systems Limited to capitalize on the growing tech sector. The company emphasized that its strong international ties with the Saudi government provide a solid foundation for its expansion strategy in the Kingdom.
With a robust portfolio in software development, trading, and business process outsourcing, Systems Limited continues to play a pivotal role in helping its clients undergo digital transformations. The company has already established a solid presence in key international markets, including the US, UK, the EU, and the Middle East. The company’s expansion into Saudi Arabia is expected to be a critical part of its long-term growth strategy, aligning with both local and regional technology trends.
As Systems Limited works toward finalizing its stock split and executing its Saudi expansion plans, both moves reflect its ongoing commitment to strengthening its market position and tapping into emerging global opportunities in the tech sector.