SE Fruits and Vegetable Limited attracted strong investor demand as its initial public offering (IPO) book-building process closed 1.6 times oversubscribed at Rs40 per share.

The book-building process ended on Tuesday after institutional and high-net-worth investors placed orders well above the available shares.

Moreover, investors fully subscribed to the book-building portion within two hours of its opening on Monday. The response highlights strong interest in the export-oriented and Shariah-compliant company.

Company Targets Rs1.2 Billion Through IPO

SE Fruits and Vegetable Limited plans to offer 30 million ordinary shares through the IPO.

These shares represent 32.01% of the company’s post-IPO paid-up capital.

At the Rs40 strike price, the company expects to raise Rs1.2 billion from the complete offering.

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Under the IPO structure, investors bought 22.5 million shares through the book-building process. This portion represents 75% of the total issue and carries a value of Rs900 million.

The company will offer the remaining 7.5 million shares to the general public.

Public Subscription Starts September 28

The public portion represents 25% of the total IPO.

Accordingly, investors can subscribe to the shares on September 28 and 29 at Rs40 per share.

The public offering will raise an additional Rs300 million if investors subscribe to the entire allocation.

Meanwhile, Topline Securities Limited and Growth Securities Limited are acting as joint lead managers for the issue.

The strong book-building response has set the stage for the public subscription phase later this month.

IPO Funds to Strengthen Working Capital

SE Fruits and Vegetable Limited plans to use most of the IPO proceeds to strengthen its working-capital position.

As a result, the company will have greater capacity for seasonal procurement.

The additional funds will also help the company increase its processing throughput. Furthermore, the company expects stronger working capital to help meet growing international demand.

Management aims to convert that demand into higher export revenue.

The company’s export-focused model covers major agricultural products, including kinnow, mangoes and potatoes.

Sargodha Company Has Nearly Three Decades of Experience

SE Fruits and Vegetable Limited operates from Sargodha.

Previously, the company operated under the name Shaheen Enterprises. It has built a track record spanning nearly three decades.

Over the years, the company has developed its business around the processing and export of fresh agricultural produce.

The IPO will provide additional capital as the company seeks to expand procurement, processing and export activity.

Overall, the strong book-building response reflects significant demand ahead of the public subscription phase on September 28 and 29.