Pak Suzuki Announces Delisting from Pakistan Stock Exchange

Pak Suzuki Motor Company (PSMC) officially announced its decision to delist from the Pakistan Stock Exchange (PSX) on Monday. The company, facing financial challenges with reported losses over the past three years, has chosen to repurchase all shares from small stakeholders.

In an official statement, Pak Suzuki disclosed that 26.91 percent, equivalent to 22,145,760 shares, are currently in the stock market at a price of Rs 406 per share. Arif Habib Limited has been appointed as the company's agent to facilitate the share buyback process.

The company cited ongoing operational losses and challenging market conditions as key factors behind the delisting decision. Notably, Pak Suzuki had previously announced a temporary shutdown of its production plant on October 19 due to a shortage of essential raw materials. The shutdown, scheduled from October 25 to October 27, impacted the automobile plant, while the motorcycle plant continued its operations.

Acknowledging severe disruptions in operations caused by inventory shortages and parts unavailability within the supply chain, Pak Suzuki extended the plant closure until October 31, 2023. The company's strategic move to delist signals a significant restructuring amid these operational challenges and financial setbacks.