Pak Suzuki Takes Bold Step: Decides to Delist from Pakistan Stock Exchange

In a significant development, Pak Suzuki Motor Company (PSMC) has formally announced its decision to delist from the Pakistan Stock Exchange (PSX), marking a pivotal moment for the renowned automotive company. The decision comes against the backdrop of financial difficulties, with reported losses over the past three years, prompting Pak Suzuki to opt for the repurchase of all shares from small stakeholders.

According to an official statement released on Monday, Pak Suzuki disclosed that 26.91 percent of its shares, equivalent to a substantial 22,145,760 shares, are currently available in the stock market at a rate of Rs 406 per share. To facilitate the share buyback process, the company has enlisted the services of Arif Habib Limited as its designated agent.

The decision to delist is attributed to persistent operational losses and challenging market conditions. Adding context to this move, it is worth noting that Pak Suzuki had recently declared a temporary shutdown of its production plant on October 19 due to a shortage of essential raw materials. Initially scheduled from October 25 to October 27, the shutdown primarily impacted the automobile plant, while the motorcycle plant continued its operations.

In response to severe disruptions caused by inventory shortages and parts unavailability within the supply chain, Pak Suzuki opted to extend the plant closure until October 31, 2023. This strategic decision to delist from the stock exchange is seen as a transformative step by the company, signaling a comprehensive restructuring plan amid ongoing operational challenges and financial setbacks.

This development unfolds as Pak Suzuki grapples with the intricate dynamics of the automotive industry, navigating through turbulent market conditions. The decision to repurchase shares from small stakeholders underscores the company's commitment to addressing its financial woes head-on.