PakStox Outlook

On Thursday, 3rd October 2024, the Pakistan Stock Exchange (PSX) experienced strong upward momentum. The KSE-100 Index opened with a gain of 109 points, rising an impressive 992 points intraday without any losses, and ultimately closing at 82,722, adding 755 points overall. It was straight up for the market throughout the day. More than half of the points in the KSE100 Index were contributed by FFC that rose 8.2%. Recall that merger of FFBL and FFC has been approved. This follows the previous day's gain of 162 points. Over the last five trading sessions, the KSE-100 Index has accumulated a total gain of 1,064 points. Year-to-date, the index has surged by 32%, reflecting continued positive performance in 2024. Today’s major gainer s on the Pakistan Stock Exchange (PSX) were led by Nishat (Chunian) Limited (NCL), which surged 10.0% to close at 28.3. TPL Trakker Ltd (TPLT) followed with an 8.7% rise, closing at 9.0, while Fauji Fertilizer Company (FFC) gained 8.2%, closing at 243.5. ...

According to the Merger Scheme, the entire business of the Company (FFBL) —including its assets, liabilities, rights, obligations, and privileges—will be merged into FFC through amalgamation. As part of this merger, all existing shares of the Company will be canceled. In exchange, FFC will issue approximately 150.87 million new ordinary shares to the Company’s shareholders (excluding FFCL itself). The share exchange will follow a swap ratio, where shareholders of the Company will receive 1 FFCL ordinary share for every 4.29 shares they currently own . Upon completion of the merger, the Company (FFBL) will be dissolved without the need for a formal winding-up process and will be delisted from the PSX. https://dps.psx.com.pk/download/document/237135.pdf

FFC reported a net income of Rs. 12.2 per share and declared a cash dividend of Rs. 10 per share for the 2nd quarter ending Jun 2024.