SE Fruits & Vegetable Limited has received approval from the Pakistan Stock Exchange (PSX) for its initial public offering (IPO).

The company plans to raise between Rs1.2 billion and Rs1.92 billion through the offering. It will use the funds to strengthen working capital and expand its processing and export operations.

SE Fruits & Vegetable will offer 30 million ordinary shares. The shares represent 32.01% of the company’s post-IPO paid-up capital.

The IPO floor price is set at Rs40 per share. Through book building, the price can rise by up to 60% to a maximum of Rs64 per share.

SE Fruits & Vegetable Sets IPO Structure

At the floor price, the offering could generate Rs1.2 billion. The proceeds could reach Rs1.92 billion if the shares sell at the maximum price.

Under the IPO structure, 22.5 million shares will go through book building. This represents 75% of the total offering.

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The remaining 7.5 million shares will be reserved for the general public. Topline Securities Limited and Growth Securities Limited are acting as lead managers.

Company Targets Working Capital and Export Growth

SE Fruits & Vegetable is based in Sargodha. The company previously operated under the name Shaheen Enterprises.

It has exported kinnow, mango and potato since 1998. Its export markets include the Middle East, Far East, South Asia and Central Asia.

Working capital will receive the largest share of the IPO proceeds. About Rs940.2 million, or 78% of the funds at the floor price, is earmarked for this purpose.

The company plans to spend Rs153.8 million on cold-chain and processing expansion. Another Rs50 million will support international offices in the UAE and Uzbekistan.

Around Rs30 million is allocated for ERP and asset-tracking systems. A further Rs26 million will support solar energy and grid-related investment.

Revenue and Profit Show Strong Growth

SE Fruits & Vegetable reported net revenue of Rs2.133 billion in FY2026. Revenue increased 24% year on year.

Profit after tax reached a record Rs303.8 million during the year. The company has also remained debt-free since FY2024.

Between FY2022 and FY2026, revenue recorded a compound annual growth rate of about 28%. Profit after tax grew at an annualised rate of around 31%.

The company currently has seasonal kinnow processing capacity of 36,000 tonnes. However, demand from existing and potential international buyers stands at about 65,130 tonnes.

Actual kinnow exports reached 5,115 tonnes in FY2026. The gap highlights the working-capital challenge that the IPO aims to address.

IPO Could Support Major Expansion

SE Fruits & Vegetable expects its business to expand after deploying the IPO proceeds.

The company projects FY2027 revenue to rise by about 137% to Rs5.05 billion. Profit after tax is forecast to increase around 124% to Rs680 million.

The projected FY2027 earnings per share stand at Rs7.25.

At the IPO floor price of Rs40, the company is valued at about 8.4 times trailing earnings. This represents a discount of roughly 55% compared with the listed food-sector price-to-earnings multiple of around 18.75 times.

Based on projected FY2027 earnings, the forward P/E ratio falls to about 5.5 times. That would represent an estimated valuation discount of around 71%.

The IPO therefore offers SE Fruits & Vegetable an opportunity to address its working-capital needs while increasing processing capacity and expanding its international footprint.