WorldCall to slash share capital by 90%, split stock

July 27, 2026 (MLN): Pakistan's paid-up ordinary share capital of WorldCall Telecom Limited (PSX: WTL) is set to be reduced by around 90%, followed by a stock split, after the Lahore High Court sanctioned the restructuring under an order dated July 08, 2026.

The court confirmed the special resolutions passed by shareholders at the company's 26th Annual General Meeting held on April 30, 2026, approving an integrated capital restructuring comprising rearrangement of the authorized share capital, reduction of the paid-up ordinary share capital, and a consequential stock split of the ordinary shares.

Under the restructuring, the paid-up ordinary share capital will first be reduced from Rs49.82bn to Rs4.98bn, cancelling the portion of capital lost or unrepresented by available assets.

Immediately thereafter, each remaining ordinary share with a face value of Rs10 will be sub-divided into ten ordinary shares of Re1 each.

The nominal value of every share will thus become Re1, while the total number of ordinary shares held by each shareholder will remain unchanged after the split.

Owing to operational limitations of the Central Depository System, the Central Depository Company (CDC) will implement the restructuring in two sequential steps first the capital reduction, followed by the stock split though the company has clarified this is purely an operational arrangement and does not alter the legal character of the transaction as one composite exercise, effective from July 08, 2026.

The company has fixed Friday, August 07, 2026 as the Entitlement Date to determine shareholders eligible to participate in the restructuring.

Book closure will be observed from August 08 to August 09, 2026 (both days inclusive), while trading in the company's shares will remain suspended on August 07, 2026 to allow CDC and the National Clearing Company of Pakistan Limited (NCCPL) to complete processing. Trades executed on the Entitlement Date will be settled on a T+0 basis.

On fractional entitlements, no fractional shares will be credited within the depository system. Where the reduction results in a balance of less than one share, the shareholder will be credited with one ordinary share under a minimum one-share provision, which will then be subdivided under the stock split.

The company has requested that no ex-price adjustment be made and that its shares not trade ex-price on account of the restructuring, since the stock split is treated as consequential upon the capital reduction rather than a separate corporate action.

Following implementation, the authorized share capital of the company will stand at Rs21bn, divided into 19.8bn ordinary shares of Re1 each and 100,000 preference shares of $100 each, equivalent to Rs1.2bn at an exchange rate of Rs120 per US dollar.

The aforementioned information was disseminated through a notification to Exchange.

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