SE Fruits & Vegetables Limited Gains PSX Approval for Rs1.2‑1.92 bn IPO
The Sargodha‑based horticulture exporter received PSX clearance to raise up to Rs1.92 bn through an IPO, aiming to fund working capital, processing expansion and overseas offices.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Food export sector gains a debt‑free, high‑growth listing; Buy bias for the IPO.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- EconomyPositively affected
Companies
Companies Mentioned
- UBL· Positively affected · Buy bias
Mentions in This Briefing
Sectors: Economy — Positive · Buy bias. PSX tickers: UBL. Food export sector gains a debt‑free, high‑growth listing; Buy bias for the IPO.
Full Story
Open on Business Recorder## PSX Approval and Offering Details
SE Fruits & Vegetables Limited, formerly Shaheen Enterprises, secured approval from the Pakistan Stock Exchange to launch an initial public offering. The company will issue 30 million ordinary shares, representing 32.01 % of its post‑IPO paid‑up capital. The floor price is set at Rs40 per share, with a book‑building range that could lift the price to Rs64, potentially raising between Rs1.2 bn and Rs1.92 bn.
## Use of Proceeds
The IPO proceeds are earmarked for: - Working capital (approximately Rs940.2 m, 78 % of floor‑price proceeds) - Cold‑chain and processing capacity expansion (Rs153.8 m) - Establishing international offices in the UAE and Uzbekistan (Rs50 m) - ERP and asset‑tracking systems (Rs30 m) - Solar energy and grid‑related infrastructure (Rs26 m)
## Company Background and Financial Performance
SE Fruits & Vegetables is a Sargodha‑based exporter of kinnow, mango and potato, serving markets in the Middle East, Far East, South Asia and Central Asia since 1998. The firm reported FY2026 net revenue of Rs2.133 bn, a 24 % YoY increase, and a record profit after tax of Rs303.8 m. It has been debt‑free since FY2024 and posted compound annual growth rates of 28 % in revenue and 31 % in profit over FY2022‑FY2026.
## Growth Outlook
Current kinnow processing capacity stands at 36,000 tonnes, while demand from existing and potential buyers is estimated at 65,130 tonnes. Export volumes were constrained to 5,115 tonnes in FY2026 due to working‑capital limits. Management projects FY2027 revenue of Rs5.05 bn (≈ 137 % growth) and profit after tax of Rs680 m (≈ 124 % growth), with forward earnings per share of Rs7.25. The IPO price implies an 8.4× trailing P/E versus the sector average of 18.75×, and a forward P/E of about 5.5×.
## Market Participation
Topline Securities Limited and Growth Securities Limited are appointed as lead managers for the issue. The offering will allocate 75 % of shares (22.5 million) to book‑building investors and 25 % (7.5 million) to the general public.
## Implications for Investors
The IPO introduces a new, debt‑free, high‑growth food‑exporter to the market, offering an attractive valuation relative to the broader food sector. Investors seeking exposure to Pakistan’s agricultural export segment may find the issue compelling, provided they assess Shariah compliance of the underlying activities.