Barkat Frisian Agro Limited, Pakistan’s largest manufacturer of pasteurized egg products, is set to launch an Initial Public Offering (IPO) aimed at raising up to Rs. 1.23 billion.
The IPO, which will be held on the 17th and 18th of February, 2025, has received approvals from the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX).
The offering, which will be conducted through the book building process, will enable the company to sell 67,735,000 ordinary shares at a floor price of Rs. 13 per share. According to Shahid Ali Habib, the CEO of Arif Habib Limited, the lead manager and book runner for the IPO, the company plans to use the funds raised to build a new state-of-the-art production facility in the Special Economic Zone (SEZ) of Faisalabad.
The successful funding will help the company expand its operations and meet the growing domestic and international demand. Muhammad Adil, CEO of Barkat Frisian Agro, said the “The new plant will increase our production capacity by 71%, taking our output from 17,000 tons per year to 29,000 tons per year.”
The new plant in Faisalabad, which is rapidly becoming an industrial hub in Punjab province, will allow Barkat Frisian Agro to scale its production of pasteurized eggs, egg whites, egg yolks, and customized egg-based products. These products are widely supplied to food manufacturers across Pakistan and abroad.
In the IPO process, investors will have the opportunity to place bids for up to 100% of the shares being offered. However, successful bidders will be provisionally allotted 75% of the shares (50,801,250 shares), with the remaining 25% (16,933,750 shares) being made available for retail investors through a public subscription on February 24th and 25th.
The IPO marks a significant step forward for Barkat Frisian Agro, which operates a manufacturing facility in Karachi and aims to further consolidate its position as a leader in the Pakistani egg products industry.