The company has been in operations for more than 10 years and is functioning as a major player in pasteurized dairy segment of Pakistan. At-Tahur major competencies include, Retail Network with market footprint of 3000+ stores across Pakistan, Vertically Integrated distribution network, Modern and automated dairy farm, 100 per cent Australian and Dutch cows herd, and high quality product range.
At-Tahur's Prema milk brand enjoys the largest market share in the pasteurized category, as per the Nielsen Retail Audit, March 2018. Over the past 5 years, the Company's product sales have witnessed strong CAGR of 30 per cent. In 2017, report presented to Supreme Court of Pakistan, by PCSIR, and UVAS, stated that "Except Prema Milk, all other samples were found to be unfit for human consumption".
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 fulfil 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.
The registration for book building has started, and At-Tahur is planning to issue 36.7 million shares with 75 percent for book building and remaining 25 percent for retail investors. 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). The last twelve months earnings translate to a price to earnings (P/E) multiple of 14.63x. Similarly, price to book value (P/B) multiple based on December 2017 book value translates into P/B multiple of 1.65x.
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.
The company's key competitors in the region include Anhar by Sharif Milk Products (Pvt) Limited, Adams, Everfresh, Dayfresh and Gourmet Foods etc. However, it has no direct competitors in the listed sector, which are solely in the pasteurized dairy business.-PR