To expand its operations, Dalda Foods Limited announced its decision of holding an Initial Public Offering (IPO) in a notification sent to the Pakistan Stock Exchange (PSX).
Dalda has decided to issue 82.5m shares via a book-building process at the floor price of Rs85 per share. The company stated that the money raised via the IPO would help it in expanding the Phase-II seed extraction plant which will enlarge its seed crushing capacity by additional 500 tonnes a day.
This will allow Dalda to raise around Rs7b of equity via its IPO.
The notification read “The proposed expansion will improve cost efficiencies, enable increased utilization of locally-grown oil seeds, reduce impact of foreign exchange volatility and generate additional profits that will help fund future business opportunities.”
Dalda’s shares will offered by a mix of IPO and offer for sale. DFL Corporation Private Ltd has been engaged to offer 52.5m ordinary shares which is 15.9pc of post-issue paid up capital. The rest of the 30m shares equivalent to 9.1pc post-issue paid up capital are being issued by the company itself, the notification read.