SECP Widens Probe Into Rs. 1.92 Billion SE Fruits IPO, Seeks Records From 30 Banks

Pakistan's securities regulator has widened its investigation into the withdrawn initial public offering (IPO) of SE Fruits and Vegetable Limited, formerly known as Shaheen Enterprises, by approaching 30 banks for details of foreign remittances, export proceeds and other foreign exchange transactions linked to the company's sponsors and directors.

According to sources, the Securities and Exchange Commission of Pakistan (SECP) has specifically sought export records from seven banks. Several institutions have already submitted their responses, which are now under review. The company had planned to raise up to Rs. 1.92 billion by offering 30 million shares at Rs. 40 each.

The IPO was halted by the SECP in October, after which the company withdrew the offering. The regulator launched its formal investigation on October 21 under Section 29 of the SECP Act, 1997, read with Section 139 of the Securities Act, amid concerns over the company's financial information and audit.

As part of the probe, the investigation team has gathered information from the IPO's joint lead managers, Topline Securities and Growth Securities, and is also examining a response submitted by consultant Parker Russell A.J.S. The SECP is reviewing the company's IPO application and shareholder information, while the Central Depository Company (CDC) has supplied an investor list and was asked for shareholder records and transfer histories of individuals named in the prospectus. The CDC filed a partial response on November 2, which remains under review.

The company's auditor, Ilyas Saeed & Co., requested additional time to provide the required information and records, and the SECP approved the extension. The investigation is continuing as the regulator examines the financial records, banking transactions and shareholder information submitted by the parties involved.

The case highlights growing regulatory scrutiny of Pakistan's equity fundraising pipeline, with the SECP signalling that prospectus disclosures and audit records will be verified before public offerings proceed.