Pakistan’s Securities and Exchange Commission (SECP) has authorized M/S Organic Meat Company Limited’s application to file, circulate and publish the prospectus for the initial public offering (IPO) of the company’s shares in the stock exchange.
According to a local media outlet report, the firm will have 60 days to publish the specifics of the proposed offer in the prospectus and will be selling its shares to the public from the approval date onwards.
The company aims to raise Rs. 720 million through IPO at the floor price of Rs. 18 per share. As Al Shaheer Corporation was announced in June 2015, this will be the first IPO of 2020 and will be the second meat firm to enter the stock market.
According to the initial draft released by the company to PSX, the entire issue of 40,000,000 common shares will be offered at a floor price of PKR 18.00/- per share through the book-building phase (including a premium of PKR 8.00/- per share) with a maximum price band of up to 40 percent.
Originally, 75 percent of the issue size i.e. 30,000,000 ordinary shares will be allocated to active bidders and 25 percent of the issue will be sold to retail investors, i.e. 10,000,000 common shares.
The bid sum for an individual and institutional investor should be no less than the minimum bid size of PKR 2,000,000 (only two million rupees). Unsubscribed shares, if any, of the general subscription portion are distributed on a pro-rata basis to active bidders of the portion of the book building.
The SECP has recently made changes to its regulatory framework for IPOs in order to encourage capital development in the stock markets.
Through amending IPO Regulations 2017, the eligibility conditions for company listing have been streamlined, and the IPO process has been made easy and cost-effective to attract new listings. This will help draw new listings, improve capital accumulation & business-friendliness.
