KARACHI: SE Fruits & Vegetables Limited has received approval from the Pakistan Stock Exchange (PSX) for its initial public offering (IPO), through which the Sargodha-based horticulture exporter plans to raise between Rs1.2 billion and Rs1.92 billion to finance working capital and expand its processing and export capabilities.
The company plans to offer 30 million ordinary shares, equivalent to 32.01 percent of its post-IPO paid-up capital, at a floor price of Rs40 per share. Under the book-building mechanism, the strike price can rise by up to 60 percent, reaching a maximum of Rs64 per share.
At the floor price, the offering would generate Rs1.2 billion, while proceeds could reach Rs1.92 billion if shares are priced at the upper limit.
Of the total offering, 75 percent, or 22.5 million shares, will be offered through book building, while the remaining 25 percent, or 7.5 million shares, will be reserved for the general public. Topline Securities Limited and Growth Securities Limited are acting as lead managers for the issue.
SE Fruits & Vegetables, formerly known as Shaheen Enterprises, has been exporting kinnow, mangoes and potatoes since 1998 to markets in the Middle East, Far East, South Asia and Central Asia.
The company plans to allocate the bulk of the IPO proceeds towards working capital requirements. At the floor price, around Rs940.2 million, or 78 percent of the total proceeds, has been earmarked for working capital.
A further Rs153.8 million will be used for cold-chain and processing expansion, while Rs50 million has been allocated for establishing international offices in the UAE and Uzbekistan.
The company also plans to invest Rs30 million in enterprise resource planning (ERP) and asset-tracking systems and Rs26 million in solar energy and grid-related investments.
The working-capital requirement is linked to the company’s seasonal business and its expansion potential. SE currently has seasonal kinnow processing capacity of 36,000 tonnes, while indicated demand from existing and potential international buyers stands at around 65,130 tonnes.
Actual kinnow exports stood at 5,115 tonnes in FY2026, indicating a significant gap between existing processing capacity and potential buyer demand, with the company seeking to use IPO proceeds to address its working-capital constraints.
SE reported net revenue of Rs2.133 billion in FY2026, representing year-on-year growth of 24 percent, while profit after tax increased to a record Rs303.8 million.
The company has remained debt-free since FY2024. Between FY2022 and FY2026, revenue and profit after tax recorded compound annual growth rates of approximately 28 percent and 31 percent, respectively.
Following deployment of the IPO proceeds, SE projects its revenue to increase approximately 137 percent to Rs5.05 billion in FY2027, while profit after tax is forecast to rise around 124 percent to Rs680 million.
Based on the projected FY2027 earnings, forward earnings per share is estimated at Rs7.25.
At the IPO floor price of Rs40 per share, the company is being offered at approximately 8.4 times trailing earnings, compared with a listed food-sector price-to-earnings multiple of around 18.75 times.
This represents a valuation discount of approximately 55 percent to the cited food-sector multiple. On projected FY2027 earnings, the forward price-to-earnings multiple falls to around 5.5 times, implying a discount of approximately 71 percent to the sector multiple.
Copyright Business Recorder, 2026
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