Looking to expand its business to the Middle East and North Africa, Soya Supreme, one of Pakistan’s largest cooking oil manufacturers, is planning an initial public offering (IPO), The News reported Saturday, citing officials.
It would be the second IPO during a turbulent year for the Pakistan Stock Exchange (PSX) due to economic and political uncertainty ahead of a general election with interest rates at an all-time high.
In 2022, there were only three public listings, which raised Rs1.3 billion ($4.3 million) – the lowest in nine years.
Soya Supreme, set up in 1991, will determine the IPO’s timing based on market conditions, Agro Processors & Atmospheric Gases (APAG) CEO Ahmad Ghulam Hussain, the parent company of the brand Soya Supreme, told Reuters.
“The board has authorised the management to appoint HBL and KTrade to initiate the process of an IPO,” he said.
He did not, however, disclose how much the company is looking to raise, nor the valuation, saying they were subject to board approval, but added that there would be no sale of existing shares.
Pakistani manufacturers use imported raw materials, and in 2022, $3.7 billion worth of soybeans and palm oil was imported.