Case
The First Meat Sector IPO:
Al Shaheer Corporation
Fazal Jawad Seyyed
1
Arslan Shahid Butt
2
Hafsa Ashfaq
2
Abstract
This case examines the June 2015 decision of Muhammad Asad, a fund manager at Al Meezan Investment
Management Limited, to participate in the Initial Public Offering (IPO) of Al Shaheer Corporation, a
leading meat sector company of Pakistan. He was interested in increasing the exposure of the Meezan
Islamic Fund (MIF) to the food sector, provided attractive risk-adjusted returns could be achieved.
Based on the research team analysis and his own assessment, Asad had to decide whether or not to
participate in the IPO book building process and the number of shares to bid for at each price level.
Both Market Multiples and Discounted Cash Flow (DCF) valuation methods had yielded share value
higher than the IPO floor price of PKR 43 per share which encouraged Asad to consider the investment
opportunity. He also had to decide on the amount that he could allocate to the IPO on behalf of MIF.
Asad had to prepare his recommendations on the IPO for presentation and approval by the investment
committee in the upcoming meeting. He has asked you to conduct an independent analysis and valu-
ation of Al Shaheer stock over the weekend and share your findings with him early Monday morning.
Keywords
Initial Public Offering (IPO) Process, Book building, IPO Valuation, Discounted Cash Flows (DCF),
Shariah Investment Criteria
Discussion Questions
1. What are the costs and benefits of Al Shaheer Corporation going public? Briefly describe the IPO
process.
2. What is the growth potential of the meat sector of Pakistan within the global halal food market?
How is Al Shaheer Corporation positioned to benefit from this opportunity?
Asian Journal of Management Cases
14(2) 65–87
© 2017 Lahore University of
Management Sciences
SAGE Publications
sagepub.in/home.nav
DOI: 10.1177/0972820117712305
http://ajc.sagepub.com
1
Visiting Faculty, Suleman Dawood School of Business, Lahore University of Management Sciences, Lahore, Pakistan.
2
Suleman Dawood School of Business, Lahore University of Management Sciences, Lahore, Pakistan.
Corresponding author:
Fazal Jawad Seyyed, Visiting Faculty, Suleman Dawood School of Business, Lahore University of Management Sciences, Lahore,
Pakistan.
E-mail: fazal.jawad@lums.edu.pk