AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: Big Bird Foods Limited (BBFL) has announced an opening share price of PKR 51.28 for its upcoming listing on the Pakistan Stock Exchange (PSX), following its merger with MetaTech Trading Limited (META). This decision comes after the Lahore High Court approved the merger on June 26, 2024, under sections 279 to 283 and 285 of the Companies Act, 2017.
The sanctioned scheme of arrangement details that the opening price would not fall below the par value of PKR 10 per share. It has been established based on a Price-to-Earnings (P/E) ratio analysis, which factors in the market equivalent share and the combined earnings potential of META and BBFL, as evaluated by their auditor, M/s Abdul Khalid and Co. Chartered Accountants.
According to information available from the Pakistan Stock Exchange (PSX), the Board of Directors of BBFL set the price after receiving the auditors’ certificate that considered the SWAP ratio impacts and the un-audited financial statements of BBFL as of the date of the court order. The approved opening price aligns with Clause X of Article 06 of the Joint Petition and the audit findings. This price reflects a significant evaluation based on the financial health and market prospects of the newly merged entity.
The PSX has been notified of the opening price, as required under Section 96 of the Securities Act, 2015, and PSX Regulations Clause 5.6.1 (a). The exchange and TRE Certificate holders have been requested to update their records to reflect the new pricing information for BBFL shares, ensuring compliance with market regulations and providing transparency to investors and stakeholders.