LAHORE: At-Tahur is gearing up for an initial public offering (IPO) on the Pakistan Stock Exchange (PSX) in the third week of June.
The registration for book building is set to begin on June 20th and At-Tahur is planning to issue 36.7 million shares with 75 percent for book building and remaining 25 percent for retail investors at Rs20 per share.
The unsubscribed retail portion would be given to book building bidders and the funds raised from the IPO will be utilized to raise the plant, milk capacity and herd size.
Arif Habib is acting as the consultant to offer for At-Tahur’s IPO at the PSX.
In a comment to Bloomberg, CEO Arif Habib said the final price will be fixed after book building.
The company’s chief executive officer (CEO) is Rasikh Elahi, son of ex-Punjab Chief Minister and former deputy PM Chaudhary Pervaiz Elahi and is the brother of Moonis Elahi.
Profit reached out for comment to Maha Jafer Butt, Director Research Capital Stake who said “At-Tahur shall be the first dairy company operating in the niche segment of production and sale of pasteurized Milk to go public.
The product portfolio of other listed companies including Fauji Foods Limited and Engro Foods Limited is more focused on the UHT treated milk production and include other food items also.”
“With increased health awareness and doubts over the quality of milk loose milk, demand for At Tahur is expected to rise. A review of the company’s past financials demonstrate sales expanding with a CAGR 28% ( as mentioned in the prospectus).
According to the prospectus, funds from the IPO shall be utilized in expanding into the untapped market of Karachi. Karachi being a large city with a literacy rate higher than many others may prove to bring in good demand. Other uses of the fund include increased herd size, expansion of the plant and farm capacity,” she said.
At-Tahur in a notification sent to the stock exchange in March announced it had applied to get listed on the bourse.
The company had submitted a draft prospectus for the issuance of shares to high-net-worth individuals, institutional investors via book-building.
It would then be followed by the issuance of shares of the company to the public and retail investors, the notification had read.
In April, Dawn reported entities looking for a potential initial public offering (IPO) on the Pakistan Stock Exchange had declined in the last year or so.
At KSE-100 index’s zenith in late May last year, when it touched a record high of 52,876 points over 17 entities had applied for listing according to the daily quotation sheet of the exchange.
At that juncture, Dalda Foods, Inbox Technologies Limited and a variety of funds in Gold Fund; Energy Fund; Capital Protected Fund; Active Allocation Fund; Strategic Allocation Fund; Treasury Fund; Prosperity Planning and privately placed sukuk had sought to be listed on the PSX.
However, in 2018 as per the quotation sheet of the exchange, only 7 companies are seeking a listing on the stock exchange which includes, Inbox Technologies Limited, Unicol Limited, At-Tahur Limited, Liberty Power Tech Ltd, TPL Life Insurance Ltd, Hira Terry Mills Ltd and Dalda Foods.
At-Tahur Limited has since its inception in 2007 strived to provide its consumers with dairy products and its Premá milk brand was launched in 2008 which in a short span of time has become a household name in Pakistan for its 100% natural purity & freshness.
This will be the third IPO of the year following Matco Foods and AGP Pharmaceutical’s listing on the bourse in January and February respectively.