SE Fruits & Vegetables Limited has officially secured approval from the Pakistan Stock Exchange (PSX) for its Initial Public Offering (IPO). The Sargodha-based exporter—formerly known as Shaheen Enterprises—aims to raise between Rs1.2 billion and Rs1.92 billion to fund working capital and expand its export and processing capacity.
Key Offering Details
- Total Shares Offered: 30 million ordinary shares (32.01% of post-IPO paid-up capital)
- Price Band: Floor price of Rs40 per share, with a maximum strike price of Rs64 (+60% via book building)
- Allocation Structure: 75% (22.5 million shares) reserved for institutional book building; 25% (7.5 million shares) allocated to the general public
- Lead Managers: Topline Securities Limited and Growth Securities Limited
Strategic Use of Proceeds The primary focus of the capital raise is overcoming working-capital constraints. While the company faces international demand of roughly 65,130 tonnes for kinnows, working-capital limits restricted FY2026 exports to just 5,115 tonnes. The funds raised at the floor price will be deployed as follows:
- Working Capital: Rs940.2 million (78% of base funds)
- Cold-Chain & Processing Expansion: Rs153.8 million
- International Expansion (UAE & Uzbekistan): Rs50 million
- ERP & Asset Tracking Systems: Rs30 million
- Solar Energy & Grid Infrastructure: Rs26 million
Financial Performance & Valuation Highlights A major player in exporting kinnows, mangoes, and potatoes since 1998 across the Middle East, Asia, and Central Asia, SE Fruits & Vegetables enters the market with a strong, debt-free balance sheet (maintained since FY2024).
- Historical Growth (FY2022–FY2026): Revenue and net profit grew at impressive CAGRs of ~28% and ~31%, respectively. FY2026 revenue rose 24% year-on-year to Rs2.133 billion, yielding a record net profit of Rs303.8 million.
- Projections (FY2027): Post-IPO expansion is expected to boost revenue by ~137% to Rs5.05 billion and raise net profit by ~124% to Rs680 million, representing a forward EPS of Rs7.25.
- Valuation Discount: Offered at 8.4x trailing earnings at the Rs40 floor price—a ~55% discount to the PSX food-sector average P/E of 18.75x. On projected FY2027 earnings, the forward P/E drops to roughly 5.5x, reflecting a ~71% discount.
