BoP to issue up to Rs30bn shares to Punjab government
- Applicable issue price for such issuance shall be the prevailing market price plus a premium of 5%
The Bank of Punjab (BoP) has proposed issuing up to Rs30 billion worth of ordinary shares to the Government of Punjab through a non-rights issue, with the subscription planned in two tranches by June 2027.
The listed bank disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.
The Board of Directors of BoP have proposed, “subject to obtaining all applicable regulatory and corporate approvals, the issuance of ordinary shares, otherwise than by way of right issue, to the Government of the Punjab, against a proposed equity subscription of up to Rs30 billion to be undertaken in two tranches: up to Rs20 billion by December 31, 2026 and the balance by June 30, 2027,” read the notice.
The price for the proposed issue shall be Rs38.20 per ordinary share; provided that, where the prevailing market price of the bank’s ordinary shares at the time of issuance exceeds Rs38.20 per share.
“The applicable issue price for such issuance shall be the prevailing market price plus a premium of 5%,” it said.
BoP said that the proposed issuance shall be subject to obtaining all requisite approvals from the shareholders of the bank through an Extraordinary General Meeting and the relevant regulatory authorities, including the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan.
The Bank of Punjab (BOP), established in 1989, is a prominent public sector commercial bank in Pakistan. It has grown significantly, becoming the second-largest public-sector commercial bank in the country.
Last week, BoP received in-principle approval from the State Bank of Pakistan (SBP) to establish an Overseas Wholesale Banking Unit in Bahrain, marking a key step in the lender’s plans to expand its international footprint.
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