Key Takeaways
- SE Fruits & Vegetables Limited has received PSX approval for an IPO to raise between Rs 1.2 billion and Rs 1.92 billion.
- The company plans to offer 30 million ordinary shares, with a floor price of Rs 40 per share, potentially increasing to Rs 64.
- Proceeds will be used for working capital, cold chain expansion, and international office setup.
SE Fruits & Vegetables Limited has been granted approval by the Pakistan Stock Exchange (PSX) for its initial public offering (IPO), aiming to raise between Rs 1.2 billion and Rs 1.92 billion. The company, formerly known as Shaheen Enterprises, will offer 30 million ordinary shares, equivalent to 32.01 percent of its post-IPO paid-up capital.
The shares will have a floor price of Rs 40 each, with the possibility of a 60 percent increase to a maximum of Rs 64 per share through the book-building process. At the floor price, the offering is expected to raise Rs 1.2 billion, while the upper end of the range could see the company raising up to Rs 1.92 billion.
Of the total offering, 22.5 million shares, or 75 percent, will be offered through book building, while 7.5 million shares will be reserved for the general public. The company, based in Sargodha, has been exporting kinnow, mango, and potato since 1998, with export markets including the Middle East, Far East, South Asia, and Central Asia.
SE Fruits & Vegetables reported net revenue of Rs 2.133 billion in fiscal year 2026, a 24 percent increase from the previous year. Profit after tax rose to Rs 303.8 million, and the company has remained debt-free since fiscal year 2024. Revenue and profit after tax recorded compound annual growth rates of about 28 percent and 31 percent, respectively, between fiscal year 2022 and fiscal year 2026.
The company currently has seasonal kinnow processing capacity of 36,000 tonnes, compared with indicated demand of about 65,130 tonnes from existing and potential international buyers. Its actual kinnow exports stood at 5,115 tonnes in fiscal year 2026. Working capital is identified as the primary use of the IPO proceeds, with the company projecting revenue of Rs 5.05 billion for fiscal year 2027, a 137 percent increase from the previous year.
Profit after tax is projected at Rs 680 million, a 124 percent increase, while forward earnings per share are estimated at Rs 7.25. The company plans to use most of the funds for working capital, with additional allocations for cold chain and processing expansion, international office setup in the United Arab Emirates and Uzbekistan, and enterprise resource planning and asset tracking systems. Solar energy and grid-related investments will also be funded.
Following the planned use of the IPO proceeds, SE Fruits & Vegetables is optimistic about its future growth, with projected revenue and profit after tax significantly higher than current levels.
