KARACHI: A major basmati rice exporting entity, Matco Foods Ltd, started trading on the Pakistan Stock Exchange (PSX) on Tuesday.

Following the gong ceremony announcing its formal listing, the stock opened on the strike price of Rs26 per share discovered under the book-building system. The share hit ‘upper lock’ and closed trading at Rs27.30.

Matco Foods Chairman Jawed Ghori accompanied by PSX Chief Executive Officer Richard Morin and Managing Director Hang You attended the ceremony.

Later, the Matco Foods chairman told the gathering that their IPO was the first new listing at the PSX in 2018.

Director Finance Matco Foods Faizan Ghori said the company completed the book building and issue of public portion of the IPO at the end of last month, with a total issue of 29.1 million shares at a strike price of Rs26 per share. Against the offer, the gross proceeds to Matco Foods Ltd from this offering amounted to Rs757 million before deducting underwriting discount, commissions and offering expenses.

He further said that Matco Foods intends to use the net proceeds from this public offering for the expansion of its existing rice glucose and protein plant capacity.

The plant currently produces 10,000 tonnes of glucose and 1,000 tonnes of protein per annum. After the expansion, it will produce 30,000 tonnes of glucose and 3,000 tonnes of protein per annum.

Published in Dawn, February 14th, 2018