Pak Suzuki Motor Company Limited (PSMC), a prominent Japanese automaker in Pakistan, has decided to voluntarily delist from the Pakistan Stock Exchange (PSX) due to persistent financial challenges. The company reported a net profit of Rs3.80 billion in the third quarter of 2023, signifying a turnaround from previous losses, mainly attributed to an increase in car prices and higher sales volume.
The delisting decision comes as PSMC faced losses in 2019, 2020, and 2022, with no dividends paid to shareholders except in 2021. Additionally, the company’s share price hit a historic low, and daily transactions were limited. As a result, Suzuki Motor Corporation, the majority shareholder, plans to acquire full ownership by buying back ordinary shares held by minority shareholders.
While this marks a significant shift in PSMC’s status on the stock exchange, Suzuki remains committed to the Pakistani market, considering it one of the most crucial markets in their global strategy. After delisting, the company intends to continue investing in Pakistan and serving its customers.
The next steps involve submitting an application for delisting to the PSX, with a general meeting of shareholders to be convened for approval through a special resolution. This decision has sparked discussions about the future of the auto industry in Pakistan.