Barkat Frisian’s IPO at PSX oversubscribed by 16.25 times

The book-building process of Barkat Frisian Agro Limited’s Initial Public Offer (IPO) observed an oversubscription of 16.25 times.

The IPO drew exceptional interest from institutional investors and high-net-worth individuals, driving the strike price to PKR 18.2 per share, a significant 40% above the floor price of PKR 13.

Barkat Frisian successfully raised a total of PKR 1.23 billion ($4.4 million), becoming the first pasteurized egg company to be listed on the PSX.

The IPO's impressive demand amounted to Rs 14.25 billion against its book-building size of Rs 1.23 billion, thanks to nearly unanimous 'subscribe' recommendations from several brokerages.

Successful bidders will be provisionally allotted 75% of the issue size, equating to 50,801,250 shares. The remaining 25%, or 16,933,750 shares, will be offered to retail investors during the general public subscription on February 24th and 25th.

Arif Habib Limited served as the lead manager and book runner for the IPO. The funds raised from equity investors will be used to build a new state-of-the-art production facility at the Special Economic Zone in Faisalabad.

Currently operating a manufacturing plant in Karachi, BFAL’s new facility will increase its pasteurized egg production capacity by 71%, boosting output from 17,000 tons to 29,000 tons per year.