AGP plans share buyback to boost returns, tighten capital structure

March 24, 2026 (MLN): AGP Limited (PSX: AGP) is moving to repurchase as many as 5.6 million of its own shares, a step aimed at tightening its equity base and boosting shareholder returns.

The board backed the plan at a meeting on March 19, 2026, targeting roughly 2% of the company’s issued and paid-up capital.

The proposal now heads to investors for approval through a special resolution at the upcoming annual general meeting.

The Karachi-based drugmaker plans to execute the buyback between April 22 and October 18, acquiring shares at prevailing market prices through the automated trading system of the Pakistan Stock Exchange.

The transaction will be financed through distributable profits, underscoring the firm’s cash position.

Repurchased shares will be held as treasury stock, giving the company flexibility for future capital management initiatives or potential employee incentive programs.

The move reflects management’s strategy to enhance key financial indicators, including earnings per share, return on equity and the stock’s break-up value, by reducing the number of shares in circulation.

Shareholders eligible to vote on the plan must be on record by April 13, with transfer books closing from April 14 to April 20. The final decision is set to be taken at the company’s 12th AGM in Karachi on April 20.

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