Lucky Cement Limited (PSX Symbol: LUCK) has announced a 5-for-1 stock split, as revealed in a notice to the Pakistan Stock Exchange (PSX) on February 21, 2025.

The decision was recommended during a Board meeting on February 20, 2025, and is pending shareholder approval in an Extraordinary General Meeting (EoGM) scheduled for March 18, 2025.

Once the stock split takes effect, the current 293 million ordinary shares of Lucky Cement Limited will be multiplied by a factor of 5, resulting in a total of 1,465 million ordinary shares. Correspondingly, the pre-split stock price of each share will be divided by the same factor.

Stock splits are commonly used by companies to improve market accessibility, liquidity, and investor participation. By lowering the price per share, companies make their stock more affordable to a wider range of investors, particularly small and retail investors, creating a more inclusive shareholder base. The increase in the number of shares enhances market liquidity and makes trading more efficient without causing price volatility.

A stock split also reflects confidence in a company’s financial strength and long-term prospects, reinforcing investor trust and positioning the company for sustained success. Unlike issuing bonus shares, which have tax implications, stock splits offer a tax-efficient way for shareholders to benefit from a company’s growth.

M. Ali Tabba, CEO of Lucky Cement Limited, highlighted that the company's significant growth over the years is attributed to strategic reinvestments into growth and expansion. He emphasized that the stock split aims to share this success story with a broader investor base, both locally and globally.

The company's strategy includes innovative measures to enhance shareholder value, as demonstrated by two share buybacks. Shareholders who retained their shares will now own a larger percentage of the company for the same initial investment, benefiting from Lucky Cement's sustained growth.