Zaid B. Zeeshan

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Use of Capital Markets
for Growth, Valuation
and Brand Awareness
IPO SUMMIT 2013
April 29, 2013
Background – EFOODS Listing in 2011
• Poor response received from public on past IPO’s
(subscriptions averaging around 30% only)
• Volatile law and order situation in Karachi during subscription
days (July 5-7, 2011)
Offer Price
Engro Foods
25.0
Amount (Rs. M)
675
Subscription
94%
Growth
Funds raised by EFOODS
No. of
Shareholders
Amount
(Rs. M)
Foreign investors
5
579
Local institutions
3
621
General public
8,791
640
Underwriters
6
35
TOTAL
1,875
• Funds to invest in growth initiatives – current and future (IPO
/ Rights Issue etc.)
• Helps build confidence of investors / lenders
• Opportunities for mergers and acquisitions
• ESOS – retain and attract top talent to fuel growth
Growth
Investors’ funds utilized to fuel growth initiatives
PRE IPO
NOW
700
1,300
Production capacity – Dairy
446 million ltrs
601 million ltrs
Production capacity – Ice Cream
19 million ltrs
36 million ltrs
Nara Farm – animal housing capacity
2,500 animals
4,500 animals
Rs. 8 Bn
Rs. 12 Bn
Milk Collection Centers
Capital assets
Market Leader in UHT dairy segment
10th largest customer of Tetral Pak International
in terms of number of packs
G20 Award on inclusive business innovation
Pakistan ICT award, Asia Pacific ICT award,
ICAP award for EMAN
IF YOU HAVE A GOOD BUSINESS MODEL
INVESTOR APPETITE IS PRESENT
Valuation
EFOODS performance vs. projections at time of listing
2011 PROJ.
Revenue (Rs. M)
2011 ACTUAL
2012 PROJ.
2012 ACTUAL
30,280
30,369
40,779
40,868
Profit after tax (Rs. M)
727
891
1,679
2,595
EPS
0.97
1.22
2.0
3.40
600
500
EFOODS share price vs. KSE 100 index
584
400
300
200
165
100
-
KSE
Engro Foods
IF YOU PERFORM WELL CONSISTENTLY
MARKET REWARDS ACCORDINGLY
Brand Awareness
Improves external visibility
(shareholders, investors, community etc.)
Annual Reports
QUESTIONS?
Zaid Bin Zeeshan
Head of Finance
Engro Foods Limited
[email protected]
Muhammad Muddasir
GM Finance & Planning
Engro Foods Limited
[email protected]
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