SECP probes discrepancies in SE Fruits IPO

The Securities and Exchange Commission of Pakistan has opened an inquiry into SE Fruits and Vegetable Limited’s IPO after an anonymous complaint raised concerns about figures in its audited accounts, Dawn reported. The complaint arrived on Sept 11, two days after the regulator approved the prospectus.

A preliminary examination identified differences between reported sales and sales tax filings for 2022-26, local sales absent from the 2024 income tax return, and a mismatch between sales adjusted for receivables and bank credits. SECP has sought explanations and documents from the company, its issue consultant and auditors, and will assess whether the gaps reflect inaccurate disclosures, accounting treatment or other causes.

The IPO process was paused during the review, and the company subsequently withdrew its application. The investigation will also examine due diligence by the consultant, the auditor’s work, the PSX’s oversight role and SECP’s internal review procedures.