Barkat Frisian Agro announces IPO on Pakistan Stock Exchange

Barkat Frisian Agro Limited (BFAL) has announced a PKR 880.5 million ($3.1 million) Initial Public Offering (IPO) as the company plans to expand pasteurized egg product output by 70% to 29,000 metric tons.

Arif Habib Limited (AHL) has been appointed by BFAL as the lead manager and book runner for raising funds through an offering. The proceeds will be used to finance the construction of BFAL’s new plant in Faisalabad. The book building process for 67.735 million shares, priced between PKR 13 and PKR 18.2 per share, is scheduled to begin on February 17 and 18.

Operating under the Special Economic Zones Act, BFAL benefits from a 10-year income tax holiday, exempting it from corporate and minimum taxes until 2029 for the Karachi plant and 2036 for the Faisalabad plant.

Currently, the existing plant has a production capacity of 17,000 metric tons, which is projected to increase to 29,000 metric tons, enhancing both domestic sales and exports of its value-added pasteurized egg products. The construction of the new plant, which will have a capacity of 12,000 tons, is already underway and is expected to be completed by Q3 FY26.

The company’s profit is forecasted to reach PKR 631 million in 2025 and is anticipated to grow to PKR 812 million the following year. Export sales are projected to rise from PKR 1.358 billion in 2025 to PKR 1.658 billion in 2026, while local sales are expected to increase from PKR 6.349 billion to PKR 9.275 billion.

BFAL, a Pakistan-Dutch joint venture between the Buksh Group and the Frisian Egg Group, specializes in producing pasteurized egg products such as whole eggs, yolks, whites, and their derivatives for the HoReCa sector, sauces and mayonnaise, and the baking and confectionery industry.

Currently operating at 90% capacity, BFAL enjoys a monopoly as Pakistan’s sole producer of pasteurized egg products, meeting less than 10% of the local demand. This indicates significant growth opportunities in both domestic and export markets. In FY24, BFAL sold 11,572 tons of pasteurized egg products locally, representing 7.6% of the total addressable market of approximately 150,000 tons.

The market for value-added processed egg products is driven by increasing food spending, the need for longer shelf-life, and growing demand for convenience foods. Retail demand for preserved egg products grew by 15-20% during the pandemic.

With a per capita egg consumption of 90 eggs, significantly lower than the global average of 180 eggs, Pakistan has substantial market potential for value-added pasteurized eggs. The United Arab Emirates, Qatar, Oman, and Saudi Arabia are key regional destinations for processed egg products, with Pakistan competing against India and Turkey in the Gulf market.

Pakistan holds a competitive edge in the global market due to the cost-effective availability of eggs, which are the primary raw material for pasteurized egg products. Maize, the country’s third-largest crop, is the main ingredient for poultry feed, resulting in cheaper egg production costs. This cost advantage enhances Pakistan’s competitiveness in the global processed egg product market, providing a sustainable edge for BFAL.