SE Fruits & Vegetable Limited has received approval from the Pakistan Stock Exchange (PSX) for its initial public offering, paving the way for the horticulture exporter 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, representing 32.01% of its post-IPO paid-up capital, at a floor price of Rs40 per share. The strike price can rise by up to 60% through book building to a maximum of Rs64 per share.
At the floor price, the IPO would raise Rs1.2 billion, while proceeds could reach Rs1.92 billion at the upper end of the price band.
Under the offering 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.
The Sargodha-based company, 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.
Around Rs940.2 million, or 78% of funds raised at the floor price, has been earmarked for working capital. Another Rs153.8 million is planned for cold-chain and processing expansion, Rs50 million for international offices in the UAE and Uzbekistan, Rs30 million for ERP and asset-tracking systems, and Rs26 million for solar energy and grid-related investment.
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. Revenue and profit after tax recorded compound annual growth rates of approximately 28% and 31%, respectively, between FY2022 and FY2026.
The company 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 were 5,115 tonnes in FY2026, highlighting the working-capital constraint the IPO is primarily intended to address.
Following deployment of the IPO proceeds, SE projects revenue to rise approximately 137% to Rs5.05 billion in FY2027, while profit after tax is forecast to increase around 124% to Rs680 million. FY2027 forward earnings per share are estimated at Rs7.25.
At the IPO floor price of Rs40, the company is being offered at approximately 8.4 times trailing earnings, around a 55% discount to the listed food-sector P/E multiple of approximately 18.75 times. Based on projected FY2027 earnings, the forward P/E falls to approximately 5.5 times, implying an even wider valuation discount of around 71%.
