The book-building portion of SE Fruits and Vegetable Limited’s Initial Public Offering (IPO) was fully subscribed within two hours of opening on Monday, reflecting strong institutional and high-net-worth investor interest in the export-oriented, Shariah-compliant company.
Bidding will continue until September 22, and the final strike price will be determined upon completion of the book-building process.
SE Fruits and Vegetable Limited is offering 30 million ordinary shares, representing 32.01% of its post-IPO paid-up capital. The IPO has a floor price of Rs40 per share, while the strike price may rise by up to 60% to a maximum of Rs64 per share, depending on investor demand.
The Company will raise at least Rs1.20 billion at the floor price, while the total proceeds may increase to as much as Rs1.92 billion if the final strike price reaches the upper limit.
Under the offering structure, 22.5 million shares, representing 75% of the issue, are being offered through book building. The remaining 7.5 million shares, or 25%, will be offered to the general public on September 28 and 29.
Topline Securities Limited and Growth Securities Limited are acting as Joint Lead Managers to the Issue.
The IPO proceeds will primarily strengthen the Company’s working-capital position, allowing it to undertake larger seasonal procurement, increase processing throughput and convert growing international demand into higher export revenue.
Based in Sargodha and formerly operating as Shaheen Enterprises, SE Fruits and Vegetable Limited has a track record spanning nearly three decades. The Company exports kinnow, mangoes, potatoes and other agricultural produce to more than 22 countries.