KARACHI: Pakistan’s SE Fruits and Vegetables Company Limited is set to launch an initial public offering next month, aiming to raise up to Rs1.92 billion ($6.9 million) to bolster its export operations in the Middle East. The move comes as Gulf nations increasingly seek alternative suppliers following regional disruptions.
Based in Sargodha, Punjab, SE is on track to become Pakistan’s first publicly listed agricultural export firm, strategically targeting the UAE, Oman, and the broader Gulf region. The company reports sustained demand for Pakistani mangoes, mandarins, and potatoes in these markets.
Currently, the Gulf accounts for approximately 80% of SE’s exports. Chief Financial Officer Rai Omer confirmed that nearly all IPO proceeds will be directed toward expanding regional operations, citing strong interest following the prospectus filing, with new orders totaling around 71,000 tons.
>”They need mangoes, they need kinnows [mandarin oranges] and they need potatoes,” Omer noted, emphasizing the robust market appetite in the Middle East. “We would be fulfilling that demand.”
>The company is prioritizing the UAE and Oman, with additional focus on Saudi Arabia, Qatar, Bahrain, and Kuwait. The IPO, scheduled for early September, is expected to strengthen client relationships in the Gulf while a new liaison office in Uzbekistan will open doors to Central Asian markets.
>Gulf imports contributed to 80% of SE’s mandarin and mango shipments last year, partially due to Afghan border closures limiting Central Asian access. However, the company anticipates a potential 60-40 split favoring the Middle East if trade routes through Iran and Afghanistan stabilize.
>Regional instability, particularly the ongoing conflict in Iran, has accelerated supply chain diversification among Middle Eastern buyers. Omer observed, “Because of the geopolitical issue, what we are seeing is our Middle Eastern importers, wholesalers, they are trying to diversify their supply.”
>Post-IPO, SE projects substantial growth, with revenues forecast to increase from Rs2.1 billion ($7.6 million) to Rs5 billion ($18 million), representing a 135% surge. Omer believes Pakistan’s fruit and vegetable exports—currently $471 million annually—could double to $1 billion within two years by capitalizing on Gulf demand.
>Nevertheless, SE highlights challenges including Pakistan’s low export penetration relative to production capacity and inadequate cold-chain infrastructure causing significant post-harvest losses. Omer also expects renewed trade with Iran, a major importer of Pakistani mangoes, contingent on regional de-escalation.
>Looking ahead, the CFO estimates the Gulf could absorb 40-50% of future export growth, noting the shift may become permanent as regional consumers develop lasting preferences for Pakistani produce.
>”The first day was a shock,” he reflected on the sudden market changes. “But then it will be structural because people will have their preference for those foods’ taste.”
