PSX approves SE Fruits IPO to raise up to PKR 1.92bn

SE Fruits & Vegetables Limited has received Pakistan Stock Exchange approval for its initial public offering. The Sargodha-based horticulture exporter can now raise between PKR 1.2 billion and PKR 1.92 billion. The funds will finance working capital and expand the company's processing and export capacity.

What is the SE Fruits IPO share price?

The SE Fruits IPO has a floor price of PKR 40 per share, with 30 million ordinary shares on offer. This represents 32.01% of the company's post-IPO paid-up capital. Through book building, the strike price can rise by up to 60% to a maximum of PKR 64 per share.

At the floor price, the offering raises PKR 1.2 billion. If shares are priced at the upper limit, proceeds could reach PKR 1.92 billion.

How are SE Fruits IPO shares being allocated?

Of the total offer, 75%, or 22.5 million shares, will be sold through book building. The remaining 25%, or 7.5 million shares, is reserved for the general public. Topline Securities Limited and Growth Securities Limited are acting as lead managers for the issue.

What will SE Fruits use the IPO proceeds for?

SE Fruits & Vegetables, formerly known as Shaheen Enterprises, has exported kinnow, mangoes and potatoes since 1998 to markets across the Middle East, Far East, South Asia and Central Asia. Most of the IPO proceeds will go toward working capital, reflecting the seasonal nature of the business and the gap between current processing capacity and potential demand.

About PKR 940.2 million, or 78% of proceeds at the floor price, is earmarked for working capital. A further PKR 153.8 million will fund cold-chain and processing expansion.

The company also plans to spend PKR 50 million on new international offices in the UAE and Uzbekistan, PKR 30 million on enterprise resource planning and asset-tracking systems, and PKR 26 million on solar energy and grid-related investments.

How has SE Fruits performed financially?

SE Fruits reported net revenue of PKR 2.133 billion in fiscal 2026, up 24% from a year earlier. Profit after tax reached a record PKR 303.8 million for the year. The company has stayed debt-free since fiscal 2024, with revenue and profit after tax growing at compound annual rates of about 28% and 31% respectively between fiscal 2022 and fiscal 2026.

The company's seasonal kinnow processing capacity stands at 36,000 tons, against indicated demand of about 65,130 tons from existing and potential international buyers. Actual kinnow exports totaled 5,115 tons in fiscal 2026, a gap that underscores the working-capital constraints the IPO is meant to address.

What growth does SE Fruits expect after the IPO?

SE Fruits projects revenue will rise about 137% to PKR 5.05 billion in fiscal 2027 once the IPO proceeds are deployed. Profit after tax is expected to grow roughly 124% to PKR 680 million, with forward earnings per share estimated at PKR 7.25. At the floor price of PKR 40, the company is valued at approximately 8.4 times trailing earnings, a discount of about 55% to the listed food sector's average price-to-earnings multiple of roughly 18.75 times.

Based on projected fiscal 2027 earnings, the forward price-to-earnings multiple works out to around 5.5 times. That implies a valuation discount of approximately 71% against the sector benchmark, positioning the SE Fruits IPO as a comparatively cheap entry into Pakistan's listed food and agriculture space.