Stock splits heat up market as seven companies restructure shares

May 13, 2025 (MLN): A surge of stock split announcements since January 2025 has injected fresh energy into the market, as seven listed companies move to restructure their shares and make them more appealing to a broader base of investors.

Among them are notable names such as Arif Habib Corporation Ltd. (PSX: AHCL), Lucky Cement Ltd. (PSX: LUCK), and United Bank Ltd. (PSX: UBL), along with Systems Ltd. (PSX: SYS), Intermarket Securities Ltd. (PSX: IMS), Thatta Cement Company Ltd. (PSX: THCCL), and Lucky Core Industries Ltd. (PSX: LCI).

Leading the pack are AHCL and LUCK, which have delivered strong post-announcement returns of 36.1% and 18.7%, respectively, as of May 13, 2025.

However, not all companies have enjoyed similar gains. IMS posted the sharpest decline, down 33.1%, while SYS and THCCL fell by 5.8% and 6.5%, respectively.

UBL saw a modest rise of 4.6%. Meanwhile, LUCK, which announced its split on May 13, has yet to show any post-announcement movement.

What Is Stock Split?

A stock split is a corporate action in which a company increases the number of its outstanding shares by issuing additional shares to existing shareholders.

While this increases the total number of shares, it proportionally reduces the price per share, so the overall market value of a shareholder’s investment remains the same.

In other words stock splits are typically used to make a company’s shares more affordable and accessible to a broader range of investors, particularly retail investors.

They also improve liquidity by increasing the number of shares available for trading.

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