Barkat Frisian Agro Limited, a joint venture between the Frisian Egg Group of the Netherlands and Pakistan’s Buksh Group, is set to raise up to Rs. 1.23 billion through an initial public offering (IPO) on the Pakistan Stock Exchange (PSX). The IPO will be conducted via the book-building process on February 17 and 18, followed by public subscription on February 24 and 25.
The Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX) have approved the company’s prospectus, IPO dates, and book-building process, according to Shahid Ali Habib, CEO of Arif Habib Limited, the lead manager and book-runner for the IPO. Barkat Frisian Agro plans to sell 67,735,000 ordinary shares at a floor price of Rs. 13 per share through the 100% book-building method.
The funds raised will be used to build a state-of-the-art production facility in the Special Economic Zone of Faisalabad, a rapidly growing industrial hub in Punjab. The new plant will increase the company’s production capacity of pasteurized eggs by 71%, from the current 17,000 tons per year to 29,000 tons per year. Barkat Frisian Agro already operates a manufacturing plant in Karachi, Pakistan’s commercial capital.
The company, Pakistan’s largest manufacturer of pasteurized egg products, produces and markets a variety of items, including pasteurized eggs, egg whites, egg yolks, and customized egg-based products for food manufacturers. The new facility is being established to meet the growing demand from both domestic and international customers, said Muhammad Adil, CEO of Barkat Frisian Agro.
During the IPO, bidders will be allowed to place bids for 100% of the issue size, with the strike price determined at the level where the issue is fully subscribed. However, successful bidders will be provisionally allotted 75% of the issue size (50,801,250 shares), while the remaining 25% (16,933,750 shares) will be offered to retail investors during the general public subscription.
This IPO marks a significant step for Barkat Frisian Agro as it seeks to expand its operations and strengthen its position in the growing market for pasteurized egg products.
