Ghani Dairies Limited, a part of the Ghani Group, plans to raise Rs2.5 billion through an Initial Public Offering (IPO) at the Pakistan Stock Exchange (PSX), in a bid to expand its operations and strengthen its position in Pakistan’s dairy sector.
“The issue comprises 104.2 million ordinary shares of face value worth Re1 each, which constitutes 24.28% of the post-issued paid-up capital of the company,” read the company’s prospectus, available at the PSX.
“75% of the issue size, i.e., 78.15 million ordinary shares of Re1 each, will be issued through book book-building process at a floor price of Rs24 per share, which will be allotted to successful bidders, and the rest… will be offered to retail investors at the strike price.”
The Ghani Group, founded in 1959, has grown to become one of Pakistan’s leading and most diversified business groups. The group has expanded into new areas, launching ventures such as Ghani Halal Feed Mill and Ghani Dairies Limited (GDL) in 2020, which is engaged in the production and sale of raw milk.
GDL supplies its entire milk output to leading dairy processors in Pakistan through long-term arrangements.
According to the draft, the principal purpose of the issue is to finance Ghani Dairies’ herd expansion, operational expansion, upgrade farm infrastructure, and strengthen its working capital position.
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“This will enhance raw milk production capacity from 17,840 TPA [tons per annum] FY 2025-26 to 33,570 TPA by FY 2026-27.
“This growth is supported by the planned induction of 1,000 pregnant heifers and achieving organic growth as the young calves will enter the milking cycle, which will immediately increase milk output.
“Furthermore, the milking capacity is expected to reach 38,371 TPA in FY 2027-28 as 250 young heifers, procured through IPO proceeds, will start milking along with organic herd growth.
“This strategic expansion will position the company to meet the growing demand for raw milk and strengthen its market presence in the dairy sector,” it said.
Last month, Matco Foods Limited, one of Pakistan’s leading rice exporters, disclosed plans to list its wholly owned subsidiary, Falak Foods (Pvt.) Limited, as a separate legal entity on the bourse.
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