The Bank of Punjab (BoP) has just announced a massive financial move. The bank plans to issue up to Rs. 30 billion worth of ordinary shares directly to the Government of Punjab. BoP will execute this equity subscription through a non-rights issue. The listed bank officially disclosed this major development to the Pakistan Stock Exchange (PSX) today, Monday.
The Board of Directors at BoP proposed splitting this massive subscription into two distinct tranches. First, the bank will issue up to Rs. 20 billion in shares by December 31, 2026. Following this, BoP will finalize the remaining balance by June 30, 2027. Therefore, the entire transaction will wrap up by the middle of next year.
Bank of Punjab Share Pricing & Premium Details
Bank of Punjab has set a clear pricing formula for this proposed issue. Initially, the price stands at Rs. 38.20 per ordinary share. However, the bank included an important condition for market fluctuations. If the prevailing market price of BoP shares exceeds Rs. 38.20 at the time of issuance, the pricing structure will change. In that specific scenario, the applicable issue price will equal the prevailing market price plus a strict 5% premium.
Before moving forward, BoP must secure several crucial approvals. BoP needs a green light from its shareholders through an Extraordinary General Meeting. Additionally, the bank requires official consent from regulatory authorities. This includes clearance from both the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP).
Meanwhile, BoP continues to grow its footprint. Established in 1989, it now stands as the second-largest public-sector commercial bank in Pakistan. Just last week, BoP marked another major milestone. The lender received in-principle approval from the SBP to open an Overseas Wholesale Banking Unit in Bahrain. Consequently, this step heavily supports the bank’s broader strategy to expand internationally.
