ITANZ advances 10-for-1 stock split plan

August 24, 2026 (MLN): Pakistan Stock Exchange-listed iTANZ Technologies Limited (PSX: ITANZ) has secured board approval, in principle, for a 10-for-1 stock split, reducing the face value of its ordinary shares from Rs10 to Re1 each.

The decision was taken at a board meeting held on Monday, in continuation of the company's earlier notice dated August 17, 2026 on the same subject.

Under the proposal, every existing share will be sub-divided into ten shares, subject to shareholders' approval via special resolution and completion of statutory and regulatory requirements.

The company's paid-up capital will remain unchanged at Rs1,186.036m, while issued shares will rise from approximately 118.60m to approximately 1,186.036m, with proportionate ownership of every member remaining unaffected. No change is required in authorized capital in rupee terms.

The board has also approved consequential amendments to the Memorandum and Articles of Association to reflect the revised face value and share capital structure, to be placed before members.

The proposal, along with the amendments, will require approval by special resolution (not less than 75% of votes cast) at the company's Annual General Meeting, tentatively scheduled for September 30, 2026.

The Chief Executive Officer, any Director, and/or the Company Secretary have been jointly/severally authorized to complete regulatory formalities with the SECP, PSX and CDC, and to finalize the effective and record dates.

For shareholders' reference, ITANZ shares closed at Rs45.41 on Friday, August 21, 2026, the last trading session preceding the board meeting, with a market capitalization of approximately Rs5.39bn.

On a post-split, illustrative basis, this would correspond to approximately Re4.54 per share, with market capitalization unaffected by the split.

The company noted that a stock split does not, of itself, alter its paid-up capital, net assets, earnings, or any member's proportionate shareholding, and does not involve any cash outlay or dilution of existing shareholders.

In a briefing note issued alongside the disclosure, the company outlined the rationale for the split.

A lower per-share price and larger share count typically improves trading liquidity and narrows bid-ask spreads, a pattern most consistently observed among PSX companies that have previously split their shares.

The move is also intended to widen the shareholder base by making shares more affordable to retail and first-time investors.

On the tax front, the company noted that a split has become a comparatively more tax-efficient route than a bonus issue.

The Finance Act 2023 reinstated a 10% withholding tax on bonus share issuances, while a split does not draw on reserves and does not currently attract the same requirement.

The briefing notes also referenced the SECP’s approval of the PSX Stock Split Guidelines in December 2024 to encourage listed companies to undertake such splits.

Since then, at least 22 PSX-listed companies across banking, cement, textiles, brokerage, engineering and technology have announced or completed stock splits.

Of the 27 precedents reviewed, 13 adopted the same 10-for-1 ratio now proposed for ITANZ.

The company cautioned, however, that the split is not expected, of itself, to raise the share price.

A review of 21 PSX companies that completed splits in 2025–2026 showed 10 rose and 11 fell in price afterward, with a median change of approximately -0.4%.

This came even as the KSE-100 index rose by roughly 44% over FY2026 and around 18% over the trailing twelve months to August 21, 2026.

One precedent skewed the simple average upward with a 304.3% gain; excluding it, the average change stood at approximately 7.4%.

The company added that the split does not, of itself, create fundamental value, as it does not alter earnings, assets, or intrinsic value, only the number and denomination of shares.

Modest administrative and regulatory costs will be incurred with the SECP, PSX and CDC, which are not expected to be material to the company's size.

As with any special resolution, there remains a low but non-zero risk the proposal may not secure the required 75% shareholder approval.

Shareholders have also been advised to ensure their CDC accounts are in order ahead of the record date so that additional shares are credited without delay.

Based on recent PSX precedents, the process from board approval to completion typically takes six to eight weeks.

The Closed Period declared from August 17, 2026 to August 24, 2026 (both days inclusive) stands concluded with effect from today.

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