Barkat Frisian’s IPO to fetch up to 1.23 billion on 17 & 18 February

Barkat Frisian Agro Limited, a joint venture of Frisian Egg Group of Netherlands and Pakistan’s Buksh Group, is all set to raise up to 1.2 billion financing from PSX through the book building process on 17th and 18th February.

The Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX) have approved the prospectus and IPO dates including book building dates and the public subscription dates, said Chief Executive Officer of Arif Habib Limited Shahid Ali Habib the lead manager and book runner for the IPO.

The Barkat Frisian Agro plans to raise up to Rs 1.23 billion through selling 67,735,000 of its ordinary shares in the IPO. The book building dates are Feb 17th and 18th, and the public subscriptions dates are 24th and 25th February.

Barkat Frisian Agro, according to Shahid Ali Habib, 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 fund raised from equity investors will be used for building a new state-of-the-art production facility at the Special Economic Zone of Faisalabad, which is fast becoming an industrial hub at the heart of Punjab province.

The company is operating a manufacturing plant in Pakistan’s commercial capital Karachi, and the new plant will increase its pasteurized eggs’ production capacity by 71% to 29,000 tons per year from the existing 17,000 tons.

The Pakistan-Dutch Joint Venture produces and markets a variety of products, including pasteurized eggs, egg whites, egg yolks, and customized egg based products that are supplied to food manufacturers.

The new plant is being set up to meet inflating demand from the company’s domestic and overseas customers, said CEO of Barkat Frisian Muhammad Adil.

In the IPO, the bidders will be allowed to place bids for 100% of the issue size, and the strike price shall be the price at which the 100% of the issue is subscribed.

The successful bidders, however, will be provisionally allotted only 75% of the issue size, i.e., 50,801,250 shares, and the company will offer the remaining 25% or 16,933,750 shares to the retail investors through the general public subscription.