APAG targets Rs2.6bn IPO as Soya Supreme maker expands production capacity

Agro Processors & Atmospheric Gases (APAG), the company behind one of Pakistan’s leading cooking oil brands, Soya Supreme, is set to enter the capital market this month with an initial public offering (IPO) aimed at raising up to Rs2.6 billion to finance its next phase of expansion.

The planned listing comes at a time when the Pakistan Stock Exchange (PSX) is experiencing renewed momentum, with strong gains in equities and growing retail investor participation driving a resurgence in IPO activity. According to Bloomberg, 2026 has already become the busiest year on record for IPOs, with 10 companies entering the market so far.

APAG intends to channel the fresh capital into expanding its manufacturing footprint and improving operational efficiency. Chief Executive Officer Ahmad Aziz Ghulam Hussain said approximately 40% of the IPO proceeds will be used to increase the company’s annual refining capacity by one-third, lifting it to 120,000 tons.

The remaining funds will be invested in constructing a new storage facility, while additional capital will be allocated to biomass and solar energy projects designed to reduce production costs and improve energy efficiency.

“We need those funds to be able to accelerate our growth and also accelerate those projects,” Ghulam told Bloomberg.

The offering reflects a broader revival in Pakistan’s primary equity market, which has gathered pace since 2024. Newly listed companies have generally delivered strong post-listing performances, encouraging more firms to pursue public offerings.

The sustained improvement in IPO activity has been supported by stronger macroeconomic fundamentals under Pakistan’s IMF programme, improved market liquidity, positive investor sentiment and a relatively stable political environment, creating favourable conditions for companies seeking growth capital through the stock market.