Pakistan's first pasteurized egg producer plans to go public

Barkat Frisian Agro Limited (BFAL) — a Pakistan-Dutch joint venture — is on the cusp of a historic initial public offering (IPO), aiming to raise PKR 1.2 billion.

The company, a pioneer in producing high-quality pasteurized eggs and egg-based products, will utilize the IPO proceeds to establish a cutting-edge production facility in Faisalabad's Special Economic Zone (SEZ).

This strategic expansion is expected to increase BFAL's annual production capacity by 12,000 tons, catering to the surging demand for its products in Pakistan and abroad. With a price-to-earnings (P/E) multiple of 6.7x, BFAL's IPO offers investors a compelling value proposition compared to the industry average.

With its visionary expansion plans and industry-leading position, BFAL presents a rare investment opportunity, allowing investors to tap into a high-growth, tax-advantaged sector, according to Arif Habib Research Limited (AHL), which is managing the IPO process.

As the sole organized player in Pakistan's pasteurized egg industry, BFAL enjoys a unique market position, unchallenged by direct competition.

Additionally, its status as an SEZ entity provides significant tax benefits, including income tax exemptions for its Karachi plant until FY29 and for the Faisalabad facility until FY34, according to AHL.