Bank Alfalah Limited (BAFL) has decided to buy back up to 200,000,000 ordinary shares through the bourse, it said in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

The statement added that these shares, having a face value of Rs10 each, constitute up to approximately 11.25% of the current issued and paid up share capital of the bank.

“Subject to, inter alia, obtaining the requisite approvals from the members of the bank and the State Bank of Pakistan,” read the statement.

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BAFL said that the purpose of the buyback is the cancellation of shares, which shall be purchased from time to time at the spot current price acceptable to the bank prevailing during the purchase period.

The shares will be purchased “from December 14, 2022 to June 2, 2023, or till such date that the purchase is complete, whichever is earlier.”

The share transfer books of the bank will be closed from 2nd December 2022 to 6th December 2022 (both days inclusive), read the notice.

The board said that the buyback will have a positive effect on the break-up value of the bank’s share, return on equity and its earning per share. “It will also provide an opportunity of exit to those members who wish to liquidate their investments, fully or partially,” said the company.

The share closed on Thursday at Rs34.26, up by Rs2.39 or 7.50%.