Soya Supreme, one of Pakistan’s leading cooking oil manufacturers, is gearing up for an initial public offering (IPO) as part of its strategic expansion into the Middle East and North Africa. This announcement comes in a year of economic and political turbulence in Pakistan, with a general election slated for the end of November and record-high interest rates. In 2022, the Pakistan Stock Exchange (PSX) witnessed only three public listings, raising Rs1.3 billion rupees, the lowest amount in nine years.
Established in 1991, Soya Supreme, a brand under the parent company Agro Processors and Atmospheric Gases (APAG), is poised to determine the timing of its IPO based on market conditions. Ahmad Ghulam Hussain, CEO of APAG, stated that the company’s board has granted authorization for the management to initiate the IPO process. To facilitate this endeavor, Soya Supreme has engaged the services of Habib Bank Limited (HBL) and KTrade, a brokerage firm.
While the exact fundraising target and valuation remain pending board approval, Hussain clarified that the IPO would not involve the sale of existing shares. Soya Supreme relies on imported raw materials for its manufacturing operations, with $3.7 billion worth of soybean and palm oil imported in 2022. The Pakistan Vanaspati Manufacturer’s Association reported that between 3.7 million to 4 million tonnes of oils and fats were produced in the country last year.
In response to import restrictions, Soya Supreme recently diversified into specialized industrial fats to meet local food companies’ demands. Furthermore, the company has expanded its footprint by exporting these specialized fats to the Middle East and North Africa region. Alongside its cooking oil range, Soya Supreme offers a selection of sauces.
This year, Dalda, Pakistan’s largest consumer staple company, also disclosed plans for an IPO, with the aim of raising between Rs3.3 billion to Rs4.6 billion. If the IPO raises Rs4.6 billion, it would stand as the largest offering by a consumer staple company in the country. Dates for Dalda’s IPO launch are yet to be announced.
Soya Supreme’s IPO marks a significant development in Pakistan’s business landscape, reflecting the company’s ambition to expand its reach into new international markets while strengthening its position in the domestic culinary industry.
