Pakistani Stock Exchange Delists PIA Shares and Introduces PIA HoldCo Shares Amidst Privatization
The Pakistan Stock Exchange (PSE) has officially delisted shares of Pakistan International Airlines (PIA), with the delisting taking effect on May 25. This move is part of PIA’s broader privatization strategy, aimed at transitioning the airline to majority private ownership to address its longstanding financial challenges.
Concurrent with the delisting, the exchange has introduced shares for the PIA Holding Company Limited (PIA HoldCo). This newly formed entity will assume several non-core assets and liabilities from PIA’s balance sheet, effectively segregating much of the airline’s debt and streamlining its financials to attract investment.
As part of the privatization process, existing PIA shareholders, predominantly owned by the Pakistani government (approximately 96%), will receive corresponding shares in PIA HoldCo. This restructuring makes PIA a fully owned subsidiary of PIA HoldCo.
The PSE confirmed that PIA HoldCo shares would commence trading on May 27, adhering to an arrangement sanctioned by the Securities and Exchange Commission of Pakistan on May 3, 2024. The trading prices for PIA HoldCo’s class A and B shares will mirror the final closing prices of the respective PIA shares on May 25.
In a related development, PIA is gearing up for potential expansion into the UK market, pending a lift of the current flight ban by the UK’s civil aviation authority. The airline has issued tenders for in-flight catering services for planned flights to London Heathrow, Manchester International, and Birmingham, indicating readiness to operate up to ten weekly roundtrips to London, nine to Manchester, and two to Birmingham. The tender calls for caterers to meet specific technical and financial standards, with a submission deadline of June 27.
This strategic overhaul of PIA, through both its delisting and the establishment of PIA HoldCo, marks a significant step in repositioning the airline within the global aviation market while focusing on operational readiness and expansion.