KARACHI: International Packaging Films Limited plans to raise PKR 1.47 billion through the issuance of 70.1 million shares to the public, constituting 10.01% of its post-IPO paid-up capital at a Floor Price of PKR 21.00/share.
The Book Building Dates are set for May 8th & 9th, with the proceeds earmarked for early repayment of long-term loans used to finance expansion projects, particularly the establishment of manufacturing facilities for BOPP & BOPET films.
As the largest flexible films manufacturer in Pakistan, the company and its subsidiaries – Cast Packaging Films (CPAK), Petpak Films (PETPAK), and Global Packaging Films (GPAK) – collectively boast the largest manufacturing capacity of flexible packaging films in the country, with a total capacity exceeding 150,000 tons per annum spread across three strategically located facilities.
The Issue will be conducted through a 100% Book Building process, with successful bidders receiving 75% of the shares while the remaining 25% will be offered to retail investors. In the event of undersubscription in the retail portion, the unsubscribed shares will be allocated to successful bidders on a pro rata basis.
In 2023, International Packaging Films Limited reported net sales of PKR 19.9 billion, with a gross margin of 27% and a profit before tax of PKR 2.9 billion, resulting in a net profit after tax of PKR 1.6 billion. The company has maintained a 3-year revenue compound annual growth rate (CAGR) of 41%.
Beyond serving the local market and reducing reliance on imported products, the company exports its goods to various regions including North America, Europe, Africa, and the Middle East, generating foreign exchange for Pakistan. CEO of IPAK Group, Naveed Godil, anticipates foreign exchange earnings of 15 to 20 million dollars through exports in the fiscal year 2024/25.
Shahid Ali Habib, CEO of Arif Habib Ltd, expressed enthusiasm for investors to seize the opportunity to invest in International Packaging Films Limited, citing its status as Pakistan’s largest manufacturer of flexible packaging films with a robust 3-year revenue CAGR of 41% and attractive forward PE and PB multiples of 4.2x and 0.8x, respectively.
Arif Habib Limited (“AHL”) and AKD Securities Limited (“AKDSL”) have been appointed as Mandated Lead Manager and Joint Lead Manager, respectively, by International Packaging Films Limited (IPAK) to facilitate the IPO. Established in 2015, IPAK embarked on its journey as a green field project, equipped with state-of-the-art manufacturing technology acquired from Bruckner Maschinenbau (Germany) to produce Biaxially Oriented Polypropylene (“BOPP”) films.
