LAHORE: With the global egg market of $130bn estimated to grow at a compound annual growth rate of 8.17pc for the next five years, a Pakistan-Dutch joint venture (JV) is expanding its capacity by raising Rs1.2bn through an initial public offering (IPO) to boost its exports to the Middle East.

The IPO is expected to happen this month. The JV is offering 67.735m of its ordinary shares to investors at a floor price of Rs13 per share through 100pc book building method.

The new plant will be established at the M-3 Industrial City in Faisalabad.

`The new plant will increase our production capacity by more than 70pc to 29,000 tonnes per year,` said the CEO of the JV, Barkat Frisian Agro Limited, Muhammad Adil Ali while talking to Dawn.

The company, which is already operating a factory in Karachi, is trying to diversify its product range to meet consumer needs effectively.

`By expanding our product portfolio, we are well positioned to capture new market opportunities and enhance our competitive edge in the eggs industry,` said Mr Ali.

The JV firm is cashing in on the synergy of its sponsors as Buksh Group specializes in the production of poultry feed and eggs while Frisian Egg International B.V, which holds 50pc stake in the company, is a global giant in egg processing and is running egg processing plants with established operations in the Netherlands, China and Egypt.

`Because of an inflated demand the company`s sales have grown remarkably in recent years,` Mr Ali said. The company`s annual sales rose about 10 times in the past four years to 12,680 tonnes from 1,286 tonnes in 2020, he said. Staff Reporter