SE Fruits withdraws IPO; SECP seeks stronger AOB powers
Pakistan’s markets regulator is reviewing who is responsible for gaps in the SE Fruits IPO prospectus, after suspending the offer, refunding investors and pressing for stronger audit oversight.
SECP is starting regulatory action over material discrepancies in the SE Fruits and Vegetable Limited IPO prospectus, which drew on the company’s audited financial statements.
After book building, SECP suspended further proceedings to protect investors; the company later withdrew the IPO voluntarily and plans to resubmit with fuller disclosures.
Subscription money has been refunded to investors.
Last month SECP had approved the prospectus for an IPO of 30 million ordinary shares.
SECP is assessing responsibility for procedural irregularities and says the case shows the Audit Oversight Board needs stronger powers, staff and funding.