Ongoing Restructuring Plan Won’t Impact Share Prices: Bank Makramah

Bank Makramah Limited on Monday clarified that the reduction of share capital and book closure under the latest restructuring scheme won’t dilute share value of existing shareholders.

The bank said the post-restructuring share price has been calculated in line with corporate governance best practices to fully protect shareholder value and preserve total market capitalisation. It said the opening price of the bank’s share on February 2, 2026, will be adjusted by multiplying the closing price of January 30, 2026, by a factor of 18.99003516.

This adjustment reflects a technical consolidation of shares following the reduction in the number of shares in issue and will not result in any dilution or loss of value for existing shareholders.

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The bank further clarified that the merger of Global Haly Development Limited (GHDL) into Bank Makramah will not lead to any change in ultimate ownership, control, or management. The sponsor of the bank, His Excellency Nasser Abdulla Hussain Lootah, owns 99.86 percent of GHDL, and the merger represents a realignment within the same ownership group. The sponsor, the bank said, remains committed to its long-term growth strategy.

Bank Makramah highlighted that it is already operating from a position of strength, having posted net profits during the first nine months of the current financial year.

The bank said its profitability has been supported by the ongoing implementation of a broader capitalization plan, including recoveries of non-performing loans, the sale of non-banking assets, the merger of GHDL, and additional sponsor support. This includes a Rs. 5 billion advance against equity injection, in addition to a Rs10 billion equity injection made in April 2023.

As a result, the bank expects its earnings per share to turn significantly positive, paving the way for the eventual resumption of dividend payouts.

The bank also disclosed that the sponsor has proposed a revision to the transaction terms under the approved scheme. While the original swap ratio was based on a share value of Rs. 2.14 determined more than a year ago, the sponsor has proposed adjusting the mechanism to effectively base the issuance of additional shares on a value of Rs. 6.25 per share.

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This adjustment is aimed at benefiting the bank and all shareholders and is expected to reduce the sponsor’s shareholding from around 86 percent to 76 percent, as previously disclosed to the PSX in November 2025.

The sponsor’s total investment in the bank has now reached Rs. 41 billion. The board and management said they are close to completing the restructuring process to enhance long-term shareholder value.