Case Title

At-Tahur’s IPO: creating Pakistan’s first public company in pasteurized dairy segment

Case overview / Abstract

This case examines the initial public offering (IPO) decision made by At-Tahur Limited during 2017. The outstanding performance of the equity market led the company to decide in favour of stock issuance to finance its required expansion. However, soon after the company started its IPO process till the month when the shares were floated in the market, Pakistan Stock Exchange experienced its worst decline since the financial crisis, with the index dropping by 17% over the one year from July 2017 to July 2018.

The IPO was oversubscribed, and the company was able to sell its shares at PKR 21 per share, higher than the floor price of PKR 20. The strong demand for the company’s shares and a successfully completed stock offering transaction during one of the most difficult periods in capital market history left the IPO management team confused about whether PKR 21 was an appropriate price for the company’s share and if it was the correct time for the company to go public.

The case provides an opportunity to discuss the valuation of unseasoned equity using market multiples and discounted cash flow models. Students are invited to value At-Tahur’s stock in light of the company’s planned expansion and take a position on whether the IPO strike price of PKR 21 was correct. The case also allows for a discussion of IPO trends, costs and benefits of going public and the IPO underpricing phenomenon.

Case Areas

Discounted Cash Flow, Equity Market, Going Public, IPO Oversubscription, IPO trends, Market Multiples, PSX, Stock Issuance, Stock Markets


Agriculture Sector


Finance and Financial Management | Operations and Supply Chain Management | Taxation

Teaching Notes


Faculty / School

School of Business Studies (SBS)


Department of Finance

Was this content written or created while at IBA?



Asian Journal of Management Cases


11 pages

Citation/Publisher Attribution

Tauseef, S. (2022). At-Tahur’s IPO: Creating Pakistan’s First Public Company in Pasteurized Dairy Segment. Asian Journal of Management Cases, 19(2), 164–175.

Find in your library