The Pakistan Stock Exchange (PSX) has announced a temporary suspension in the trading of Systems Limited (PSX: SYS) shares due to the implementation of a stock split that aims to reduce the face value of each share. This strategic move by one of Pakistan’s leading tech firms is set to increase the accessibility and liquidity of its stock without impacting the overall paid-up capital of the company.
As per the official notification issued by the PSX, trading of Systems Limited shares in the Ready Market will be halted for two business days, beginning May 29 and continuing through May 30, 2025. This trading suspension has been scheduled to facilitate the face value change of SYS shares, which will be adjusted from Rs. 10 per share to Rs. 2 per share, reflecting a 5-for-1 stock split.
The temporary trading halt coincides with Systems Limited’s previously announced book closure date of May 31, 2025, which is a crucial procedural step in executing the stock split. As a result of this change, the total number of SYS shares will increase significantly from 293,116,150 to 1,465,580,750, although the company’s overall paid-up capital will remain unaffected.
In addition to the trading pause in the Ready Market, this corporate action will also impact Systems Limited’s standing in the Futures Market. Currently qualified as a Deliverable Futures Contract (DFC) eligible security, Systems Limited’s existing contracts—SYS-MAYB, SYS-JUNB, and SYS-JUL—will be pre-matured on May 27, 2025. The settlement for these pre-matured contracts will take place on May 30, 2025.
Following the completion of the stock split and settlement processes, the PSX will introduce a new set of deliverable future contracts for SYS. These include SYS-JUNB, SYS-JULB, and SYS-AUG, which will cover future periods of 30, 60, and 90 days respectively. These contracts will be made available for trading from June 2, 2025.
Trading of SYS shares in both the Ready and Future Markets is expected to resume on June 2, 2025, contingent upon the completion of all regulatory formalities. On resumption, the opening price of the shares will be recalibrated to reflect the revised face value. This means that the new opening price will be one-fifth of the closing price recorded on May 27, the last active trading day before the suspension.
Stock splits are often employed by companies to make their shares more affordable to a broader base of investors without altering the market capitalization or intrinsic value of the company. By increasing the number of shares available while keeping the overall capital unchanged, Systems Limited is looking to enhance stock liquidity and potentially attract greater investor participation.
This development is particularly significant in the context of Pakistan’s evolving capital market landscape, where investor interest in technology sector stocks continues to rise. With Systems Limited being one of the top-performing tech companies on the PSX, this move may also signal growing maturity and strategic financial management within the country’s IT industry.
Market watchers, investors, and financial analysts will be closely observing the post-split performance of SYS shares and the overall impact of this decision on market dynamics.