The biggest cooking oil producer in Pakistan, Dalda Foods Limited, is preparing for an initial public offering (IPO) in the nation to finance the expansion of its production capacity, according to a report from Bloomberg on Monday.
According to Dalda Foods’ chief executive officer Aziz Jindani, the share sale is planned to occur before Ramadan, which is likely to start on March 22 and aims to raise Rs3.3 billion ($14 million) and Rs4.6 billion.
According to data compiled by Bloomberg, Dalda’s IPO would be the largest by a consumer goods company in Pakistan at Rs4.6 billion. Since Air Link Communication Limited’s Rs6.4 billion listing in September 2021, it would also be the largest IPO in the nation.
Jindani stated: “This particular IPO is intended to fund Port Qasim expansion. The company has a factory at one of the busiest shipping ports in the nation. In addition, the money could increase Karachi’s ability to extract seed oil.
He continued by saying that it might increase to 900 tons daily, more than double the present rate.
Shahid Ali Habib, the CEO of Arif Habib Limited (AHL), revealed that the offering might involve the sale of 50 million shares, of which two-thirds will be brand-new shares, and the remainder will come from existing shareholders. The IPO’s sole adviser is Arif Habib Limited, it should be noted.
In 1937, Unilever introduced Dalda to the area; however, the company later sold its Pakistani operations to the Westbury Group, which Bashir Jan Mohammad and several staff members run. According to its website, Dalda eventually started producing liquid tea whitener and cooking oil.
Given that Pakistanis continue to spend on cooking oil despite higher inflation and a slowdown in economic growth because it is regarded as a household necessity, Jindani claimed that this industry is “recession-proof.”.
The CEO revealed that since 2018, the company’s revenues have increased by an average of 27% annually. The revenue for the fiscal year 2021–2022 reached Rs88 billion, surpassing that of other significant food producers in the nation like FrieslandCampina, Engro Pakistan Limited, and National Foods Limited, the executive continued.
Additionally, it was discovered that the cooking oil market, which is thought to be worth about $8 billion, comprises about 5% of Dalda’s products. Therefore, the listing might enable Dalda to increase its market share in Pakistan’s fragmented edible oil market.
 in the nation to finance the expansion of its production capacity, according to a report from Bloomberg on Monday.){kind=link}