Systems Limited (PSX: SYS), one of Pakistan’s leading technology firms, is set to undergo a strategic corporate action involving a stock split, prompting a temporary trading suspension on the Pakistan Stock Exchange (PSX). This move, scheduled around a book closure on May 31, 2025, is aimed at enhancing share liquidity and making the stock more accessible to a broader investor base.
According to a notice issued by PSX, trading in Systems Limited shares on the Ready Market will be suspended for two days, from May 29 to May 30, 2025. This is to allow for the smooth implementation of the stock split, which will see the face value of SYS shares reduced from Rs. 10 to Rs. 2 per share — effectively a 5-for-1 split.
The decision to restructure the face value aligns with global best practices where such splits are used to reduce the per-share price, making the stock more attractive to retail investors without affecting the company’s market capitalization or paid-up capital. In the case of Systems Limited, while the number of outstanding shares will surge from 293,116,150 to 1,465,580,750, the total paid-up capital will remain unchanged.
As Systems Limited is classified as a Deliverable Futures Contract (DFC) eligible security, the change also impacts its futures trading. Existing futures contracts under the tickers SYS-MAYB, SYS-JUNB, and SYS-JUL will be pre-matured on May 27, 2025, with settlements scheduled for May 30, 2025. This pre-maturity ensures that all existing obligations are resolved ahead of the stock split, preventing discrepancies in contract values post-adjustment.
To facilitate uninterrupted futures trading, PSX will introduce new 30-day, 60-day, and 90-day contracts — SYS-JUNB, SYS-JULB, and SYS-AUG respectively — beginning on June 2, 2025. The new contracts will align with the revised share structure and open at prices reflective of the split-adjusted value.
Barring any regulatory hurdles, trading in Systems Limited shares — both in the Ready and Futures Markets — is expected to resume on June 2, 2025. Upon resumption, the opening price of SYS shares will be adjusted to reflect the new face value, set at one-fifth of the closing price recorded on the last trading day before suspension, which is May 27, 2025.
This stock split marks a significant milestone in Systems Limited’s journey on the PSX and reflects the company’s continued efforts to broaden its investor base. Market analysts believe that the increased affordability and improved liquidity of SYS shares post-split could attract greater participation from retail investors, thereby enhancing overall market activity.
Investors and market participants are advised to monitor official PSX communications for further updates and ensure that their trading strategies are adjusted accordingly.
