SE Fruits & Vegetables secures PSX approval for IPO to raise up to Rs1.92bn

SE Fruits & Vegetables Limited has received approval from the Pakistan Stock Exchange (PSX) for its initial public offering (IPO), with the horticulture exporter aiming to raise between Rs1.2 billion and Rs1.92 billion to fund working capital and expand its processing and export operations.

The Sargodha-based company plans to offer 30 million ordinary shares, representing 32.01% of its post-IPO paid-up capital, at a floor price of Rs40 per share. The strike price may increase by up to 60% through the book-building process to a maximum of Rs64 per share.

At the floor price, the IPO will raise Rs1.2 billion, while proceeds could reach Rs1.92 billion at the upper end of the price band.

Under the proposed structure, 75%, or 22.5 million shares, will be offered through book building, while the remaining 25%, or 7.5 million shares, will be reserved for the general public.

Topline Securities Limited and Growth Securities Limited are acting as lead managers to the issue.

SE Fruits & Vegetables, formerly operating as Shaheen Enterprises, has been exporting kinnow, mango and potato since 1998 to markets across the Middle East, Far East, South Asia and Central Asia.

The company has earmarked around Rs940.2 million, equivalent to 78% of the proceeds at the floor price, for working capital. Another Rs153.8 million will be used for cold-chain and processing expansion, while Rs50 million has been allocated for setting up international offices in the UAE and Uzbekistan.

The company also plans to invest Rs30 million in enterprise resource planning and asset-tracking systems and Rs26 million in solar energy and grid-related infrastructure.

SE reported net revenue of Rs2.133 billion in FY2026, up 24% year-on-year, while profit after tax rose to a record Rs303.8 million. The company has remained debt-free since FY2024.

Between FY2022 and FY2026, the company’s revenue and profit after tax recorded compound annual growth rates of approximately 28% and 31%, respectively.

SE currently has seasonal kinnow processing capacity of 36,000 tonnes, compared with indicated demand of around 65,130 tonnes from existing and potential international buyers. However, actual kinnow exports stood at 5,115 tonnes in FY2026, with the company citing working-capital constraints as a key factor limiting exports.

Following the deployment of IPO proceeds, the company projects revenue to increase approximately 137% to Rs5.05 billion in FY2027, while profit after tax is forecast to rise around 124% to Rs680 million.

FY2027 forward earnings per share are estimated at Rs7.25.

At the IPO floor price of Rs40, SE Fruits & Vegetables is being offered at approximately 8.4 times trailing earnings, compared with a listed food-sector P/E multiple of around 18.75 times. Based on projected FY2027 earnings, the forward P/E falls to approximately 5.5 times.