Barkat Frisian Agro Limited, a joint venture of Frisian Egg Group of Netherlands and Pakistan’s Buksh Group, is aiming to raise up to Rs. 1.2 billion in financing from the Pakistan Stock Exchange (PSX) through an upcoming book-building process.
The Securities and Exchange Commission of Pakistan (SECP) and the PSX have approved the prospectus and IPO dates, including book building and public subscription dates, announced Arif Habib Limited CEO Shahid Ali Habib, who is also the lead manager and book runner for the IPO.
The deal envisions the sale of 67,735,000 ordinary shares in the IPO. The book building dates are Feb. 17-18, while the public subscriptions dates are Feb. 24-25.
According to Habib, Barkat Frisian Agro is Pakistan’s largest manufacturer of pasteurized egg products, which plans to sell its shares each at a floor price of Rs. 13 through 100% book building method. The organization plans to use the funds raised from equity investors to build a new state-of-the-art production facility in the Special Economic Zone of Faisalabad.
Currently, the company is operating a manufacturing plant in Karachi. The new plant would increase its pasteurized eggs production capacity by 71% to 29,000 tons per year from the existing 17,000 tons.
The Pakistani-Dutch joint venture produces and markets a variety of products, including pasteurized eggs, egg whites, egg yolks, and customized egg based products for food manufacturers.
Barkat Frisian CEO Muhammad Adil said the new plant would meet inflating demand from the company’s domestic and overseas customers.
During the IPO, bidders will be able to bid for 100% of the issue size. The strike price shall be the price at which the 100% of the issue is subscribed. Successful bidders, however, would be provisionally allotted only 75% of the issue size, i.e., 50,801,250 shares. The remaining 25%, or 16,933,750 shares, would be offered to retail investors through the general public subscription.