The Securities and Exchange Commission of Pakistan has widened its investigation into the withdrawn initial public offering of SE Fruits and Vegetable Limited, seeking export records from seven banks and foreign-exchange details from 30 banks. The regulator issued a statement on Saturday outlining the latest steps in the inquiry.
According to the regulator, the seven banks have been asked to provide export records for the company, which was formerly known as Shaheen Enterprises. Separately, 30 banks have been asked for information about 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 launched the investigation on October 21 under Section 29 of the SECP Act, 1997, read with Section 139 of the Securities Act. The inquiry follows concerns about the company’s financial disclosures and audit, which led the regulator to halt the offering in October, after which the company withdrew it.
SE Fruits, a Sargodha-based exporter of fruit and vegetables, had planned to raise up to Rs1.92 billion by offering 30 million shares at Rs40 each. The prospectus was approved in September, and book building was fully subscribed within two hours, but the company announced on October 13 that it would withdraw the IPO and refile with fuller disclosure. The regulator later said it had found material discrepancies in the prospectus, and the stock exchange confirmed on October 22 that the entire subscription amount had been refunded to investors.
The investigation team has 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 also reviewing the company’s IPO application and shareholder information.
The Central Depository Company 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. The company’s auditor, Ilyas Saeed and Company, requested additional time to provide the required information and records, and the SECP granted the extension.
The regulator said it will examine the preparation and approval of the prospectus, identify any lapses or negligence, and determine those responsible. Nothing has been proven against the company or anyone involved, and the investigation is continuing as the regulator examines the financial records, banking transactions and shareholder information submitted by the parties.
