The book-building process for Barkat Frisian Agro Limited’s (BFAL) Initial Public Offering (IPO) concluded with an oversubscription of 16.25 times, marking a historic moment at the Pakistan Stock Exchange (PSX). Investor demand reached Rs14.25 billion, significantly exceeding the Rs1.23 billion offering size.
The IPO attracted strong participation from institutional investors and high-net-worth individuals, with the strike price hitting Rs18.2 per share, the maximum 40% increase from the floor price of Rs13 per share. The IPO makes BFAL the first pasteurized egg company to list on the PSX.
Arif Habib Limited (AHL) served as the lead manager and book runner for the IPO.
According to a report by Arif Habib Limited, a total of 707 investors participated in the book-building phase, out of which 667 investors successfully secured shares.Â
The largest allocations were made to high-net-worth individuals (HNWI), who were allotted 15.53 million shares, followed by mutual funds (13.12 million shares), TREC holders (8.57 million shares), and other institutional and corporate investors (7.87 million shares). Insurance companies received 2.66 million shares, while commercial banks and DFIs secured 2.12 million shares, and provident and pension funds obtained 934,782 shares.
Successful bidders in the book-building phase will be provisionally allotted 75% of the shares, totaling 50.8 million shares. The remaining 25% (16.93 million shares) will be offered to retail investors during the public subscription on February 24 and 25.Â
Proceeds from the IPO will be used to establish a new production facility in the Special Economic Zone of Faisalabad. Currently operating a manufacturing plant in Karachi, the company plans to increase its pasteurized egg production capacity by 71%, expanding from 17,000 tons to 29,000 tons per year with the new facility.
