The first Initial Public Offering of FY21 from Pakistan

The Organic Meat Company Limited is set to go public with its Initial Public Offering (IPO) and subsequent listing on Pakistan Stock Exchange. It is a processing and an exporting company of world class Halal beef and mutton. This is the first IPO of the fiscal year FY21.

The prospectus of the company was published and made available to the public on 15th June 2020. The registration process is scheduled to take place from 30th June 2020, to 7th July 2020, while the book building process will be held on 3rd, 6th and 7th July 2020. The public subscription dates are 14th to 16th July 2020. Topline Securities Limited and Intermarket Securities Limited are the Joint Consultants to the issue, and AKD Securities Limited is the Book Runner for the Issue.

The Organic Meat Company Limited intends to raise Rs720 million through the IPO by issuing 40 million ordinary shares through the book-building process at a floor price of Rs18/ share (including a premium of Rs 8/- per share) with a maximum price band of up to 40% or Rs 25.20/share. The strike price may be set anywhere between Rs 18/share to Rs 25.20/share.

The issue comprises of 40 million shares, constituting 35.77% of the post-IPO paid up capital of the Company. 100% of the issue will be offered to institutional investors and high-net worth individuals through book building. Successful bidders would be provisionally allotted 75% of the issue size, and 25% of the issue size would be offered to retail investors. Unsubscribed shares from the retail portion shall be allotted to successful bidders on pro-rata basis.

The Organic Meat Company has posted a profit of Rs217 million for FY19, generating sales revenue of Rs2.57 billion during the said year. The Company posted an EPS of Rs3.04 according to its prospectus. The IPO is taking place through the implementation of the amended regulations of Securities & Exchange Commission of Pakistan (SECP) for the Initial Public Offering by companies. Amendments were made in the Public Offering Regulations, 2017 by SECP, whereby the eligibility criteria for the listing of companies was simplified. The IPO process was made easier and cost-effective to attract new listings.

On this occasion, Farrukh H Khan, Managing Director, Pakistan Stock Exchange said, “It is a happy and proud moment for Pakistan Stock Exchange as the premier and only stock exchange of the country to list the first company in the fiscal year FY21”.

Khan further stated, “This goes to the credit of all the stakeholders and regulators, especially SECP, for reviewing and revising the Public Offering regulations to facilitate a simplified and convenient regulatory framework to allow for more companies to come forward and get listed. On our part, we will continue our efforts to facilitate and encourage equity listings at the Exchange, which will not only benefit the individual companies and the investing public but the economy as a whole as well”.

Mohammed Sohail, CEO, Topline Securities said, “I congratulate The Organic Meat Company Limited for holding a successful IPO and satisfying all the requirements for holding the same under the amended regulations of the SECP for holding IPOs and for listing”.

FaridAlam, CEO of AKD Securities, speaking about the book-building process of the said issue stated, “It is a proud moment for AKD Securities to have facilitated by acting as Book Runners in this IPO. The Organic Meat Company Limited exemplifies numerous fundamentally strong and robust enterprises of Pakistan, which even in times of turbulent economic environment have been resilient and have come out strongly and looks poised for growth and long term success”.

Faisal Hussain , CEO of The Organic Meat Company Limited, said, “It’s been a long journey, starting from a very small facility to getting listed. We are very proud to be listed at the Pakistan Stock Exchange. The funds being raised through the IPO would help us raise the value and profile of the Company and enable further growth. We will make every effort to live up to the expectations of the investing public and also continue the growth momentum”. Thanking all parties who took part in the process of the IPO, Hussain said, “On this occasion, I would also like to thank and congratulate our team of advisors for the hard work and commitment towards the IPO”.


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