KARACHI: The Organic Meat Company Limited is set to go public with its Initial Public Offering (IPO) and subsequent listing on Pakistan Stock Exchange (PSX), as an exporting and processing company of world class halal beef and mutton meat. This will be the very first IPO of the fiscal year 2020-21.
The prospectus of the company was published and made available to the public on June 15, 2020. The registration process is scheduled to take place from June 30, 2020, to July 7, 2020, while the book building process will be held on July 3, 6, and 7, 2020. The public subscription dates are July 14, 2020, to July 16, 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 40,000,000 ordinary shares through the book-building process at a floor price of Rs18/- per share (including a premium of Rs8/- per share) with a maximum price band of up to 40 percent or Rs25.20 per share. The strike price may be set anywhere between Rs18/- to Rs25.20 per share.
The issue comprises of 40,000,000 shares, constituting 35.77 percent of the post-IPO paid up capital of the company. The 100 percent of the issue will be offered to institutional investors and high-net worth individuals through book building. Successful bidders would be provisionally allotted 75 percent of the issue size, and 25 percent 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 Limited has posted a profit of Rs217 million in 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 the Securities and Exchange Commission of Pakistan (SECP) for the Initial Public Offering by companies. Amendments were made in the Public Offering Regulations, 2017 by the SECP whereby the eligibility criteria for the listing of companies was simplified, and the IPO process was made easier and cost-effective to attract new listings.
MD, Pakistan Stock Exchange, Farrukh H Khan, 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 2020-21". He further stated, "This goes to the credit of all the stakeholders and regulators, especially the 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 on the Exchange which will not only benefit the individual companies and the investing public but the economy as a whole as well."
The CEO of Topline Securities, Mohammed Sohail, 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."
Farid Alam, CEO of AKD Securities Ltd., speaking about the book-building process of the said issue, stated, "It is a proud moment for us as AKD Securities Limited 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 has been resilient and have come out strongly and looks poised for growth and long term success."
The Chief Executive and Sponsor of The Organic Meat Company Limited, Faisal Hussain, 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 Organic Meat Company and enable further future 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, Faisal Hussain further stated, "On this occasion, I would also like to thank and congratulate our team of advisors for the hard work and commitment towards the IPO."
Copyright Business Recorder, 2020
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