Ghani Dairies plans 104m-share PSX IPO to boost dairy operations

December 01, 2025 (MLN): Ghani Dairies Limited has formally applied for listing on the Main Board of the Pakistan Stock Exchange, setting the stage for one of the more interesting agribusiness offerings in recent years.

The company has placed its Draft Prospectus on the PSX website for public comments, as required under the Public Offering Regulations, 2017.

Written feedback can be submitted to PSX at the designated email address until COB Monday, December 8, 2025.

Initial impression:

The company operates a technologically advanced corporate dairy farm, shows strong herd expansion momentum, and supplies milk to top processors under long-term arrangements.

However, the IPO’s pricing dynamics and capital-heavy expansion plan will likely draw scrutiny from savvy investors assessing sustainability and returns.

According to details released by the PSX, Ghani Dairies is seeking to raise capital through an Initial Public Offering of 104,200,000 ordinary shares, representing 24.28% of its post-IPO equity.

The IPO structure includes a sizeable book-building component. Seventy-five percent of the shares, amounting to 78.15 million, will be offered through book building at a floor price of PKR 24 per share, which includes a premium of PKR 23.

The price band extends up to 40 percent above the floor, providing ample room for demand-driven price discovery.

The remaining 26.05 million shares, constituting 25 percent of the issue, will be offered to retail investors at the strike price finalized in the book-building phase. Any retail undersubscription will be picked up by the underwriters, ensuring full coverage of the retail portion.

While the registration window for eligible investors and the bidding and subscription dates will be announced later, the listing process has already sparked interest due to the company’s rapid operational expansion.

Ghani Dairies was incorporated in 2020 and converted into a public limited company earlier this year.

Its commercial activities began in 2021 with the import of 210 heifers from the United States, and the herd has since scaled up through additional imports from the US and Australia. As of August 24, 2025, the company maintains a herd of 2,487 cattle, comprising 1,377 mature milking animals and 1,110 growing young stock.

The company operates a modern corporate dairy farm in Rahdari, Noor Pur Thal, District Khushab. The farm is equipped with advanced herd management and milking systems, including KUHN TMR feed mixers from France, automated milking parlours imported from the United States, and a European Plate Heat Exchanger cooling system.

A digital herd management platform further enhances efficiency, animal health monitoring, and productivity oversight. Ghani Dairies supplies its entire raw milk production to leading dairy processors under long-term procurement arrangements, providing stable demand and predictable revenue flows.

The proceeds from the IPO are earmarked for an extensive expansion programme that aims to significantly increase herd size, improve infrastructure, and strengthen operational capacity.

Under the planned deployment of funds, the company expects to add 1,250 heifers, which includes 1,000 pregnant cattle and 250 non-pregnant, allowing rapid scale-up of production capacity with genetically superior animals.

Additional investment will support working capital needs, ensuring uninterrupted operations and timely feed procurement.

A major portion of the capital will be directed toward building four new milking sheds and a modern milking parlour to accommodate the enlarged herd.

The company also plans to construct three heifer sheds along with a dedicated hospital shed, improving disease management and animal care.

Feed and storage facilities, including corn silos, silage bunkers and a raw material warehouse, will enhance feed preservation and reduce wastage, while additional mechanisation such as TMR machines, tractors, wheel loaders and feed pushers will help streamline farm operations.

To protect milk quality and reduce losses, the company intends to install new storage silos and chillers, supporting compliance with regulatory standards.

Ghani Dairies also plans to invest in renewable energy by deploying a solar power system and transformer, which is expected to reduce energy costs and ensure uninterrupted operations. Further investments in animal comfort, such as rubber mats and calf cages, are aimed at improving herd health, reducing lameness and enhancing calf survival.

Ghani Dairies forms part of the Ghani Group, though it does not hold any shareholding in other group companies, nor does it have any subsidiaries or joint ventures. Its sponsors include Aitzaz Ahmad Khan, Hafiz Avais Ghani, Shoaib Ghani, Ahad Ghani, Saad Ghani, Vaneeza Avais, and Ghani Holdings & Ventures (Pvt.) Limited.

For investors, the offering presents a blend of opportunity and complexity. The company operates in a sector with structurally rising demand, benefits from high-quality genetics, and has secured long-term customers.

Its planned expansion suggests potential for sizable growth in milk production, making it a notable agribusiness proposition.

Yet, the capital-intensive nature of dairy farming, the sensitivity of margins to feed costs, and the execution challenges of large-scale expansion remain key factors investors will weigh carefully before bidding.

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