Shan Foods is Planning an IPO

Shan Foods is considering an initial public offering (IPO) to execute its expansion plans – which include acquisition and new product launches, according to the CEO.

“We are definitely considering an IPO,” Sikandar Nawaz Tiwana, Chief Executive Officer, Shan Foods told a magazine during an interview at the company’s headquarter at Korangi Industrial Area.

“We are evaluating the advantage of an IPO. Do we need the funds, is the question”, said the CEO in an interview to the magazine.

Shan had previously backed away from conventional banking as a financing source owing to Founder Sikander Sultan’s interpretation of Islam – that prohibits interest-based borrowing.


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He refused to disclose any timeline or further details, but Shan has been publicly thinking about an IPO since at least January 2014, when it participated in Pakistan IPO Summit.

At the zenith of the KSE-100 index in late May last year, when it touched a record high of 52,876 points, 17 entities had applied for a listing according to the daily quotation sheet of the exchange, reported Dawn.

Before panic struck the Pakistan Stock Exchange in May 2017, Chairman PSX Board, Muneer Kamal stated that many companies had been preparing for a listing but backed out due to fear of under-subscriptions.

“I think Shan will go for it [IPO] now. They will do it by 2020, if not before,” said a source familiar with tha matter.

Shan Foods is in the process of launching a few new products, including wheat flour, told an insider. Tiwana too hinted this during the interview. “It could be anything related to our existing brand portfolio as we are looking into next possible categories,” said the CEO. “It could be wheat or pasta,” he added.

Shan Foods’ management estimates that the share of the informal market as a proportion of the total market has gone down by 10 percentage points in the last three years.

The CEO didn’t disclose details of their expansion plans and the products or categories it will be adding to the business nor did he mention whether Shan will launch them from its own platform. He, however, confirmed Shan is looking to acquire another company.

In recipe mix and plain spices, Shan is amongst the top two, neck-to-neck with arch-rival National Foods Limited (NFL) – a bigger brand based on revenues and number of categories; but in overseas markets, the former has a larger share.

Today, Shan has customers in 65 countries and manufacturing units and offices in Pakistan, the UAE, Saudi Arabia and the United Kingdom.

Via: Profit


  • Jamil Foreign

    We have been using all brand spices of Pakistan in abroad since long. Now all spices of Pakistan are wanted in other countries people too including Indian, Balgladeshi, Nepal, Thailand, USA, Europeans etc.

    • AbdulB1

      I wonder why Indians would want it? don’t they have their own brands?

  • Adnan

    Shan, Mehran, National Main Jaldi Job Bhi Nahi Ati