Big Bird Foods Converts Directors’ Loans Into Equity

Big Bird Foods receives SECP approval to convert Rs1.5 billion directors’ loans into equity through new share issuance.

Big Bird Foods Limited (PSX: BBFL), a Lahore-based food company, has secured approval from the Securities and Exchange Commission of Pakistan (SECP) to convert directors’ loans worth Rs1.5 billion into equity.

According to a company disclosure issued on Friday, the conversion will take place through the issuance of 30.35 million ordinary shares at a price of Rs49.42 per share. The share price includes a premium of Rs39.42 per share.

The shares will be allotted to the company’s directors through an “other than right” offer. This move follows shareholder approval granted during the company’s annual general meeting held on October 28, 2025.

Big Bird Foods has also requested the Pakistan Stock Exchange to notify Trading Right Entitlement (TRE) certificate holders about the planned conversion.

The restructuring is part of the company’s broader strategy to strengthen its financial position by expanding its equity base and reducing liabilities. Companies in Pakistan’s packaged food sector, particularly mid-sized firms, have increasingly pursued similar capital restructuring initiatives in recent years.

Industry observers note that such conversions can improve balance sheets and help companies attract longer-term investment as they scale operations in a competitive consumer market.