Arif Habib Corp posts strong earnings, proposes 10-for-1 stock split

KARACHI: Arif Habib Corporation Limited (AHCL) reported strong financial results for the six months ended December 31, 2024, with profitability surging on the back of strategic investments and higher returns. The company posted a consolidated profit after tax of Rs5.99 billion, up from Rs5.43 billion (restated) a year earlier, translating into earnings per share (EPS) of Rs14.66, compared to Rs13.3 (restated).

On an unconsolidated basis, AHCL’s profit after tax soared to Rs15.16 billion from Rs4.52 billion (restated), with EPS jumping to Rs35.94 from Rs10.72 (restated). The company attributed its strong performance to higher dividend income, remeasurement gains on investments, and strategic portfolio management.

AHCL’s board has proposed a 10-for-1 stock split to boost market liquidity and enhance investor accessibility. The move will reduce the face value of each share from Rs10 to Rs1, increasing the total number of issued shares from 421.7 million to 4.22 billion, while the company’s paid-up capital remains unchanged. Shareholders will receive 10 shares of Re1 each for every one share of Rs10 held, with the effective date to be announced after regulatory approvals.

An extraordinary general meeting (EGM) is scheduled for March 19, 2025, where shareholders will vote on the proposal. “We are pleased to report another period of strong financial performance, driven by our disciplined investment strategy and portfolio management,” said Arif Habib, CEO of AHCL in a statement released on Tuesday. “The proposed stock split aligns with our goal of improving stock liquidity and making AHCL shares more accessible while maintaining shareholder value.”

AHCL remains focused on diversified investments, sustainable growth, and maximising shareholder value. Further details on the stock split’s effective date and record date will be announced following regulatory approvals, the statement read.