Soya Supreme, one of Pakistan's largest cooking oil manufacturers, is planning an initial public offering (IPO) to support its expansion into the Middle East and North Africa. The company's parent, Agro Processors & Atmospheric Gases (APAG), has authorized HBL and KTrade to initiate the IPO process. The exact amount to be raised and the company's valuation are awaiting board approval, and there will be no sale of existing shares in the offering.
The IPO's timing will be determined by market conditions, according to Ahmad Ghulam Hussain, CEO of APAG. Soya Supreme, established in 1991, has recently diversified into specialized industrial fats to meet demand from local food companies, particularly given import restrictions within Pakistan. Pakistan relies heavily on imported raw materials for its cooking oil industry, with $3.7 billion worth of soybean and palm oil imported in 2022.
This would be the second IPO in Pakistan's turbulent stock exchange this year, marked by economic and political uncertainties ahead of a general election and high interest rates. In 2022, Pakistan saw only three public listings, raising $4.3 million, the lowest in nine years. Another Pakistani consumer staple, Dalda, also announced IPO plans to raise between $11 million to $15.3 million, potentially making it the largest by a consumer staple company in the country, though its IPO dates are not yet public.
