Pak Suzuki Decides to Delist From PSX

In an unexpected move, Pak Suzuki Motor Company (PSMC) has decided to delist from the Pakistan Stock Exchange (PSX), as the company’s majority shareholders are mulling to purchase all outstanding shares.

In a notice sent to the PSX, the company stated, “This is to inform you that (a) meeting of the Board of Directors of PSMC, will be held on Thursday, 19 October 2023 to review and consider the majority shareholder’s intent to purchase all outstanding shares of Pak Suzuki Motor Company Limited held by other shareholders and de-listing under Rule 5.14.1. of the listing regulations,”

Furthermore, the automaker said that decision taken by the board shall be communicated right after the board meeting.

Meanwhile, Pak Suzuki Motor Company (PSMC) has declared a ‘closed period’ from October 12, 2023 to October 19, 2023 as required by Clause 5.64 of the PSX Rule Book, which states that no Director, CEO, or Executive, shall deal with shares of the company during the closed period.

Some reports state that Pak Suzuki Motor Company’s (PSMC) decision to delist from the Pakistan Stock Exchange (PSX) is not having enough incentive to stay listed as compliance cost is high.

The company’s announcement made its share price hit the upper limit after months of remaining under pressure.

It is pertinent to mention that PSMC had announced a loss of Rs. 9.6 billion during the first six months of the fiscal year FY2022-23 and the company has also observed several non-production days (NPDs) for both cars and motorcycles.

Pakistan’s automotive industry is facing a lot of challenges due to the country’s economic situation, which range from high energy costs, inability to obtain LCs for imports and depreciation of the local currency.

The delisting from PSX will not have a major impact on the automotive industry or the company, but it is considered negative development for the PSX as there are very few large companies listed.

Read more: Is Pak Suzuki Reducing Car Prices After Rupee’s Recovery?

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