Trading in Matco Foods begins at PSX

The formal trading of shares of newly listed Matco Foods Limited, one of Pakistan's largest Basmati rice exporting company, started on Pakistan Stock Exchange (PSX) Tuesday. A special ceremony was held at the main trading hall of the PSX. Matco Foods Chairman Javed Ghori rang the traditional bell on the opening of the trading session.
On the first day of trading, the share of Matco Foods closed at its upper circuit of Rs 27.30, up Rs 1.30 with total volumes of 2.493 million shares. This was the first IPO for the year 2018 in Pakistan and will add another company in the food sector on the PSX board. Matco completed the book building and public portion of the IPO in the end of January with a total issue of 29,143,000 ordinary shares, at a strike price of Rs 26 per share.
The gross proceeds to Matco Foods Limited from this offering were Rs 757 million before deducting underwriting discounts, commissions and offering expenses. Matco Foods Limited intends to use the net proceeds from this public offering for the expansion of its existing Rice Glucose and Protein Plant from 10,000 MT of glucose and 1,000 MT of protein production capacity per annum to 30,000 MT of glucose and 3,000 MT of protein respectively.
Speaking on the occasion Jawed Ali Ghori, Chairman of Matco Foods said "Listing on the PSX is an important milestone in the history of our Company and a matter of great pride for all the stakeholders of Matco. We are grateful for the support of the investing community, our advisers, and especially the PSX and SECP which are playing a highly commendable role in developing our country's equity capital markets.
"Matco Foods' brand "Falak" Basmati rice is available in all major cities of Pakistan and exported to over 40 countries around the world. "We will continue to invest and grow our brand domestically and abroad," said Khalid Ghori, CEO of Matco Foods, "in addition to expansion of Rice Glucose and Rice Protein division."
MCB Bank acted as book-running managers for the offering, and Arif Habib Limited acted as the consultant to the issue. The Chief Executive Officer of Pakistan Stock Exchange Richard Morin said some more companies are coming for listing on the stock exchange. Deputy Managing Director PSX Hang You, senior management, brokers and others also attended the event.