SECP expands SE Fruits IPO probe, seeks export records from seven banks

ISLAMABAD (News Desk): The Securities and Exchange Commission of Pakistan (SECP) has sought export records from seven banks as part of its ongoing investigation into the proposed initial public offering (IPO) of SE Fruits and Vegetable Limited, formerly known as Shaheen Enterprises.

According to an official SECP statement, the regulator has also sought information from 30 banks regarding foreign remittances, export proceeds and other foreign exchange transactions received in the accounts of the company’s sponsors and directors.

Some banks have submitted their responses, which are currently under review, the regulator said.

The SECP initiated the investigation on October 21 under Section 29 of the SECP Act, 1997, read with Section 139 of the Securities Act. The investigation team has also received information from the IPO’s joint lead managers, Topline Securities and Growth Securities, while the response submitted by consultant Parker Russell–A.J.S. is being examined.

The regulator is reviewing the company’s IPO application and shareholder information. The Central Depository Company (CDC) provided an investor list and was subsequently asked to submit shareholder lists and transfer histories of individuals named in the prospectus. Its response, received on November 2, was partial and remains under review.

Meanwhile, the company’s auditor, Ilyas Saeed & Co., requested additional time to provide the required information and records. The SECP granted the extension.

The investigation follows concerns regarding the company’s financial disclosures and audit. SE Fruits had planned to raise up to Rs1.92 billion through the issuance of 30 million shares at Rs40 each. However, the SECP halted the IPO in October, following which the company withdrew its offering.