Barkat Frisian Agro shares surge by 10% on debut, closing at Rs20.02 on PSX

Barkat Frisian Agro Limited (BFAGRO) made a strong debut at the Pakistan Stock Exchange (PSX) on Friday, March 7, with its shares soaring by the maximum allowed 10% to reach Rs20.02 per share, in line with market expectations. The stock hit the cap price shortly after trading opened at 9:17 am, marking an increase of Rs1.82 compared to its Initial Public Offering (IPO) price of Rs18.2.

A total of 10,642 shares were traded at the capped price by 9:31 am, with the KSE-100 Index climbing 867 points, settling at 114,580 points.

BFAGRO, a joint venture between the Netherlands' Frisian Egg Group and Pakistan's Buksh Group, was formally listed at PSX in a gong ceremony this morning. Shahid Ali Habib, CEO of Arif Habib Limited (AHL), the lead manager of the IPO, stated that the stock's performance was anticipated, highlighting that off-market trading had seen the stock priced at Rs24-25.

The IPO raised Rs1.23 billion by selling 67.74 million shares during a two-day book-building phase in February, with the offering oversubscribed by 4.77 times. The company aims to use the funds to build a new production facility in Faisalabad.

Barkat Frisian, founded in 2017, specialises in high-quality pasteurised egg products, catering to industries such as HoReCa (hotels, restaurants, cafes), sauces, mayonnaise, and the baking sector.