Pakistan’s halal The Organic Meat Company IPO oversubscribed

The Initial Public Offering of Pakistan’s halal meat exporter The Organic Meat Company Limited was oversubscribed, according to local media reports on Wednesday (Jul 8).

Dawn news agency cited consultant to the IPO, Topline Securities’ Mohammed Sohail, as saying bids of around 1.4 billion rupees ($8.4 million) were received in the first phase to qualified investors, and that bids for 68.1 million shares were placed as against an offer of 40 million.

The strike price of the issue was 20 rupees, which is 2 rupees higher than the floor price.

The public subscription dates are for Jul 14 to Jul 16.

The Organic Meat Company Ltd intends to raise 720 million rupees ($4.3 million) through the IPO by issuing 40 million ordinary shares, it said in its prospectus dated Jul 2. It was eyeing a floor price of 18 rupees per share with a maximum price band of up to 40% or 25.20 rupees per share.

The Karachi-based company posted a profit of 217 million rupees ($1.3 million) in the 2018-19 financial year, with revenue reaching 2.57 billion rupees.

Its business is in mutton and beef, as well as animal by-products. The company says it exports to the Middle East, Southeast Asia, East Asia, Central Asia, Western Asia and the CIS region.

The Organic Meat Company Ltd’s listing on the Pakistan Stock Exchange will be the first IPO of the fiscal year 2020-21 that starts in July.

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