SE Fruits IPO: The CTIs Said All Was Well. So What Went Wrong?

On October 16, the Securities and Exchange Commission of Pakistan announced it was taking action against SE Fruits and Vegetable Limited, citing inconsistencies in its prospectus. The regulator said it halted proceedings after book building in order to shield investors, and later the company pulled its Rs1.2 billion offering voluntarily. Mettis Global has separately reported that the offering was reversed and that refunds are running later than the timeline first given to investors.

Mettis Global's findings suggest that the sales presented to investors do not match the company's tax and customs filings, with export figures in FBR records falling well short of the prospectus. A complaint lodged on September 10, a day after approval, questioned the figures underlying the offering. The report also indicates that around half of the Rs2.13 billion in FY26 reported sales was credited to accounts outside the company's own name.

The certificate signed by the consultant to the issue, Topline Securities and Growth Securities, affirmed that nothing material had been concealed. Brokers and large investors have reportedly received refunds, while retail applicants were still waiting, and the PSX has issued no cancellation notice. Some retail applicants said the Central Depository Company had not contacted them, and they were told repayment would come next week.