The book-building process for Barkat Frisian Agro Limited’s Initial Public Offer (IPO) has concluded with an oversubscription of 16.25 times, a historical development at PSX. The IPO received an unbelievably overwhelming response from institutional investors and high-net-worth individuals. The strike price was Rs 18.2 per share, a maximum of 40% higher than the floor price of Rs 13.

BFAL has raised Rs1.23 billion, making it the first pasteurized egg company IPO in PSX.

Several brokerages had issued almost unanimous calls to ‘subscribe,’ which resulted in investor demand amounting to Rs 14.25 billion against the IPO’s book-building size of Rs. 1.23 billion.

The successful bidders will be provisionally allotted only 75% of the issue size, i.e., 50,801,250 shares, and the company will offer the remaining 25%, or 16,933,750 shares, to retail investors through the general public subscription on 24th and 25th February.

Arif Habib Limited is 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 of Faisalabad.

The company currently operates a manufacturing plant in Pakistan’s commercial capital, Karachi. The new plant will increase its pasteurized egg production capacity by 71% to 29,000 tons per year from the existing 17,000 tons