Known by its brand Prema, At-Tahur Limited is now gearing up for an initial public offering (IPO) on the Pakistan Stock Exchange (PSX) in the third week of June.
The company back in March announced it had applied to get listed on the bourse.
The registration for book building is set to begin on June 20th and At-Tahur is planning to issue 36.7 million shares with 75 percent for book building and remaining 25 percent for retail investors at Rs 20 per share. With a face value of Rs 10 per share, the company’s ordinary shares are being issued at a premium of Rs 10 (floor price Rs 20 per share).
While the robustness seen in the pasteurized milk segment is one reason why a certified quality milk brand would want to expand and raise capital, At Tahur Limited has some specific needs to fulfill with the proceeds from the IPO.
The funds raised from the IPO will be utilized to raise the plant, milk capacity and herd size.
The company has a total funding requirement of Rs 945 million, out of which the IPO will generate 77.6 percent of the requirement i.e. over Rs 730 million; the remainder constitutes debt financing from MCB Islamic Bank.
Arif Habib is acting as the consultant to offer for At-Tahur’s IPO at the PSX.
The company’s chief executive officer (CEO) is Rasikh Elahi, son of ex-Punjab Chief Minister and former deputy PM Chaudhary Pervaiz Elahi and his the brother of Moonis Elahi.
This will be the third IPO of the year following Matco Foods and AGP Pharmaceutical’s listing on the bourse in January and February respectively.
It is true that Prema has gained wide popularity in Punjab and KP in a short time despite low marketing efforts.
The company’s key competitors in the region include Anhar by Sharif Milk Products (Pvt.) Limited, Everfresh, Dairyland, Gourmet Foods and Haleeb Foods etc.
However, it has no direct competitors in the listed sector that are solely in the pasteurized dairy business. The company is also planning to cater to the untapped market of Karachi.
At-Tahur Limited founded in 2007, launched its Prema brand in 2008. The company’s product portfolio includes dairy products like milk and a wide range of kindred products like yogurt and other variants.