• Organic Meat Company Limited (TOMCL) has announced a Right Issue of 30mn shares at PKR 27/—per share (inclusive of PKR 17/—premium), raising PKR 810mn to fund strategic initiatives. The Right Issue, offered at a 25% discount to the prevailing market price, aims to reduce high-cost short-term debt, bolster working capital, and invest in capacity expansion, including a tripe cooking unit and red offals processing facility.
• This capital raise aligns with TOMCL’s long-term growth strategy, enhancing operational efficiency and meeting the rising global demand for meat products, particularly in high-potential markets like China and the GCC. Shareholders stand to benefit from improved profitability and value creation as the initiative strengthens TOMCL’s financial position and supports its continued market leadership.

Company Overview

• The Organic Meat Company Limited (TOMCL), a leading player in Pakistan’s meat export industry, specializes in the export of halal meat and meat products to the Gulf Cooperation Council (GCC) countries, China, and other international markets. TOMCL has carved out a niche in the high-demand halal food sector, meeting stringent quality and processing standards.
• TOMCL’s investment thesis is anchored in robust export-led growth, with a 62% YoY increase in volumes driven by strong demand from key markets, including UAE, China, and Gulf countries. Its strategic entry into China as the first Pakistani meat exporter approved by GACC unlocks significant long-term revenue potential. Recent capacity expansion by 40% positions TOMCL to meet rising global demand and diversify its value-added product portfolio, particularly for the Chinese market. Despite macroeconomic challenges, strong cost management has maintained healthy profit margins, while the renewal of a UAE export contract secures a stable revenue stream, reinforcing TOMCL’s market leadership.
• Courtesy – AHCML