The Organic Meat Company Ltd., a Pakistani meat processing startup, has applied for a listing at Pakistan Stock Exchange (PSX) with the plan to float 40 million ordinary shares in its Initial Public Offering (IPO).
According to the details, This will be the first IPO of 2020. The company has shared its draft prospectus on the Pakistan Stock Exchange’s website.
According to the initial draft issued by the company to PSX, the entire issue of 40,000,000 ordinary shares will be offered through the book-building process at a floor price of PKR 18.00/- per share (including a premium of PKR 8.00/- per share) with a maximum price band of up to 40%.
Initially, 75% of the issue size i.e. 30,000,000 ordinary shares will be allotted to successful bidders and 25% of the issue i.e. 10,000, 000 ordinary shares will be offered to retail investors.
An individual and institutional investor’s bid amount should be no less than the minimum bid size of PKR 2,000,000 (Two Million Rupees only). Unsubscribed shares, if any, of the general subscription portion will be allocated to successful bidders of the book building portion on a pro-rata basis.
Topline Securities and Intermarket Securities have been mandated as Joint Lead Consultants to the Issue while AKD Securities is the Book Runner. The date of the IPO will be announced in the coming days.
The company has reported a profit of Rs. 217 million in FY19, with a revenue of Rs. 2.57 billion during the year. It has also reported an earning per share of Rs. 3.04 according to the draft prospectus.
The company was incorporated in 2010 and commenced operations in 2011 with two initial products, fresh chilled beef and mutton, and frozen boneless beef, having capacities of 5 tons per day and 3 tons per day respectively
Since then the company has expanded its daily production capacity to 75 TPD and 30 TPD and product
portfolio to four (4) products with multiple market coverage. Currently, it has the largest product range as well as market access from Pakistan’s meat export sector.
TOMC’s slaughtering and meat processing facility is spread over 11 acres at Gadap, Karachi. The facilities are approved to supply products to Iraq, Kuwait, Oman, Qatar, Kingdom of Saudi Arabia, (KSA), United Arab Emirates (UAE), Bahrain, Egypt, Azerbaijan, Malaysia, and Vietnam, whereas efforts are underway to procure approvals for new markets such as Hong Kong, China, and Russia. TOMC has also successfully qualified as a direct vendor to large regional food processors such as National Foods (Americana), Sunbula in KSA, etc.
Furthermore, owing to large demand of the company’s offal product, TOMC plans to set up an offal processing facility at Export Promotion Zone, Port Qasim Karachi where it will import raw offal from Ukraine, CIS region, Germany, Italy and another one at Korangi, Karachi where raw offal will be processed for exports to Vietnam, Hong Kong, Thailand, and Myanmar.
Furthermore, once the Chinese market opens up for Pakistani food products, the company plans to export directly to the lucrative Chinese market for meat and offal.