Dalda Foods set to get listed on stock exchange

Karachi: To expand its operations, Dalda Foods Limited announced its decision of holding an Initial Public Offering (IPO) in a notification sent to the Pakistan Stock Exchange (PSX).

Dalda has decided to issue 82.5m shares via a book-building process at the floor price of Rs85 per share. The company stated that the money raised via the IPO would help it in expanding the Phase-II seed extraction plant which will enlarge its seed crushing capacity by additional 500 tonnes a day.

This will allow Dalda to raise around Rs7b of equity via its IPO.

The notification read “The proposed expansion will improve cost efficiencies, enable increased utilization of locally-grown oil seeds, reduce impact of foreign exchange volatility and generate additional profits that will help fund future business opportunities.”

Dalda’s shares will offered by a mix of IPO and offer for sale. DFL Corporation Private Ltd has been engaged to offer 52.5m ordinary shares which is 15.9pc of post-issue paid up capital. The rest of the 30m shares equivalent to 9.1pc post-issue paid up capital are being issued by the company itself, the notification read.

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Mohammad Farooq
The author is an Assistant News Editor at Profit by Pakistan Today. His works have been published in Dawn, Express Tribune, LiveMint India, Huffingtonpost India and The News on Sunday. He tweets @MohammadFarooq_
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