Shield Corporation Limited to Voluntarily Delist from Pakistan Stock Exchange

PAKISTAN

Shield Corporation Limited (SCL), a Pakistani manufacturer of baby care and hygiene products, has announced its decision to voluntarily delist from the Pakistan Stock Exchange (PSX). The company made this announcement in an official filing on Wednesday.

The Board of Directors approved the move under PSX’s voluntary delisting rules, authorizing company sponsors to buy back shares from minority shareholders at a fair price, subject to regulatory approval.

The decision follows several challenges faced by the company, including significantly low share liquidity, with an average daily trading volume of only 923 shares over the past year, as well as financial losses in the last two fiscal years. Additionally, SCL has not declared dividends since 2021.

Management stated that delisting would reduce operational complexity and allow greater focus on the company’s core business, especially after discontinuing its diaper production line earlier this year.

The sponsors believe that the delisting will provide minority shareholders a fair exit opportunity. Following PSX’s acceptance of the delisting application, a general meeting will be held to seek shareholder approval.

Shares of Shield Corporation closed at Rs408 on Wednesday, up 10% from the previous session. – ER News Desk

MORE NEWS

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top