The book-building portion of SE Fruits and Vegetable Limited’s Initial Public Offering (IPO) concluded on Tuesday at a strike price of Rs40 per share, attracting demand 1.6 times the shares offered.
The book-building portion was fully subscribed within two hours of opening on Monday, reflecting strong interest from institutional and high-net-worth investors in the export-oriented, Shariah-compliant company.
SE Fruits and Vegetable Limited is offering 30 million ordinary shares, representing 32.01% of its post-IPO paid-up capital. Based on the strike price of Rs40 per share, the Company will raise Rs1.20 billion through the IPO.
Under the offering structure, 22.5 million shares, representing 75% of the total issue, were offered through the book-building process. The book-building portion amounts to Rs900 million at the determined strike price.
The remaining 7.5 million shares, representing 25% of the issue, will be offered to the general public at Rs40 per share on September 28 and 29. The public subscription portion is expected to raise Rs300 million.
Topline Securities Limited and Growth Securities Limited are acting as Joint Lead Managers to the Issue.
The IPO proceeds will primarily be used to strengthen the Company’s working-capital position, enabling 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 is engaged in the processing and export of kinnow, mangoes and potatoes.
