KARACHI: WorldCall Telecom Limited (PSX: WTL) has issued a detailed Frequently Asked Questions (FAQ) document to address shareholder concerns regarding its upcoming capital restructuring, which includes a reduction in share capital followed by a stock split. The company said the initiative is aimed at improving transparency and helping investors better understand the mechanics and implications of the court-approved corporate action.
According to the company, the restructuring is primarily an accounting exercise intended to rationalize its capital structure. Over time, accumulated losses, unrepresented capital, and discounts on issued shares had inflated the balance sheet. By reducing the paid-up capital and lowering the face value of its shares, WorldCall will absorb these accumulated losses, placing the company on a more sustainable financial footing for future growth, investment opportunities, and capital raising.
The restructuring will take place in two sequential steps. First, the company will implement a 90% capital reduction by cancelling paid-up capital that is no longer represented by available assets. This will be immediately followed by a 10-for-1 stock split, restoring shareholders’ total number of shares to the same level as before the capital reduction. As a result, investors will not experience any lasting change in the number of shares they own.
WorldCall emphasized that the exercise will not affect shareholders’ proportional ownership, voting rights, or financial interests in the company. The company also clarified that no new shares will be issued, no assets will be distributed, and no value will be transferred among shareholders. Furthermore, the face value of each ordinary share will decrease from Rs. 10 to Rs. 1, while the Pakistan Stock Exchange will not apply an ex-price adjustment because the total number of shares held by investors remains unchanged after the combined transaction.
Addressing concerns related to its major shareholder, GlobalTech Corporation (GTC), WorldCall stated that the restructuring does not provide any special privileges or preferential treatment to GTC. The company also confirmed that the process involves no cash outflow, transfer of assets, or changes to liabilities, creditors’ rights, Convertible Preference Shares (CPS), or debt instruments. The restructuring is purely an internal balance sheet reorganization designed to strengthen the company’s financial presentation.
The company explained that although the Lahore High Court approved the restructuring as a single integrated scheme, operational requirements within the Central Depository System (CDS) require the process to be executed in two separate phases. Fractional shares arising during the capital reduction stage will be handled in accordance with court-approved rounding rules.
WorldCall has also announced the key dates for the corporate action. The entitlement date is set for Friday, August 7, 2026, which will also serve as the trading suspension date for CDS processing under T+0 settlement. The company’s share transfer books will remain closed from August 8 to August 9, 2026, while the restructuring follows the Lahore High Court’s sanction granted on July 8, 2026.
