Karachi: The Securities and Exchange Commission of Pakistan (SECP) has granted approval to Pace (Pakistan) Limited to issue 140 million new ordinary shares at a discounted price of Rs9 per share. This strategic move will help the company convert debt worth approximately Rs1.261 billion into equity and strengthen its balance sheet.
Major Step in Debt Restructuring
Pace Pakistan informed the Pakistan Stock Exchange on Thursday that the issuance targets long-outstanding Temporary Finance Certificates (TFCs), financial liabilities, and property-related arrangements. The company will issue these shares against non-cash consideration under Section 83(1)(b) of the Companies Act, 2017. Shareholders had already passed special resolutions in favour of the plan during an Extraordinary General Meeting held on September 24, 2025.
Transitioning from regulatory details, the new shares will not come through a rights offering but will go to specific persons or entities. All issued shares will remain subject to a six-month lock-in period as required by takeover regulations. This approval marks an important milestone in the company’s ongoing efforts to restructure its finances and improve operational stability.
Positive Signal for Investors
Pace Pakistan has actively worked on debt settlement and balance sheet improvement in recent years. Industry observers view this latest development as a positive step that could reduce financial pressure and create room for future growth. The discounted share issuance allows the company to clear liabilities efficiently while bringing in fresh equity without immediate cash outflow.
The decision reflects SECP’s support for corporate restructuring initiatives that promote long-term sustainability. Market participants will now watch closely how this move affects Pace Pakistan’s stock performance and overall financial health in the coming months. The company continues to focus on streamlining operations and exploring new opportunities in the property sector.
