Cracking the Seal on APAG's IPO

Mettis Global reported that Agro Processors & Atmospheric Gases Limited, the Karachi company behind Soya Supreme, Taqat and Champion, plans to raise up to Rs2.6 billion through a PSX Main Board IPO. The floor price is Rs32.00 and the cap is Rs44.80, while the Rs2.00 face value follows a 1:50 split completed in April 2026. The offer covers 58,049,541 shares, or 15 per cent of post-IPO capital.

The review argues the advertised discount is overstated. It says the DCF model begins from EBIT, which appears to include short-term investment income. Cash is also added at the end, so part of the same value could be counted twice. Measured against a median peer P/E of 15.08x rather than the 21.51x weighted average, the floor's discount shrinks to about 4.4 per cent.

Mettis Global also notes that utilisation stayed between 42.54 and 45.89 per cent over FY23 to FY25, while roughly Rs522 million of the raise funds a 33 per cent capacity increase. Its overall verdict is skeptical, as the CEO's written answers settled some points, such as board approval for short-term borrowing, but left valuation and free float questions open. The review concludes the floor price sits close to fair value rather than at a steep discount.