IPAK's IPO oversubscribed by 1.73x

May 09, 2024 (MLN): The book-building process of International Packaging Films Limited’s (IPAK) Initial Public Offer (IPO) has concluded with an oversubscription of 1.73 times, the company said today.

“The IPO received an overwhelming response from institutional investors and high-net worth individuals as the strike price clocked in at Rs25.2 per share, higher than the floor price of Rs21 the leading flexible packaging films manufacturer of the country said in a statement.

International Packaging Films Limited is going to raise Rs1.77 billion in total. Ipak listing is a significant event as Ipak is the largest manufacturer of flexible packaging film. 

Several brokerages had issued almost unanimous calls to ‘subscribe,’ which resulted in investor demand amounting to Rs1.77bn against the IPO’s book-building size of Rs1.47bn at the floor price. 

The general public will subscribe to 17,526,364 shares (25% of the total offer size) on May 15-16 at the strike price of Rs25.2, the company said.

The proceed from IPO will be utilized to pay off some of the debts.

Naveed Godil, CEO International Packaging Films Limited, in his message thanked investors for their overwhelming response.

Muhammed Amin, Chairman of International Packaging Films Limited expressed his gratitude for the confidence of investors in the company.

He said “ There is a tremendous potential to increase shareholders’ value.  The Board and the management is fully committed to the plan and has a clear strategy of increasing market share, driving growth of domestic market through import substitution and increasing specialized films export”.

“ As we grow, a wider number of shareholders will reap the benefits post IPO,” he further said.

International Packaging Films Limited recorded net sales of Rs19.9bn in the year 2023 while its gross margin for the financial year 2023 remained 27%.

Its profit before tax for year 2023 was Rs2.9bn while its net profit after tax was Rs1.6bn.

The company’s 3-year revenue CGAR remained at 41%.

The group collectively offers a complete portfolio of packaging solutions, producing BOPP, CPP, and BOPET films, making it the first-ever group in Pakistan to provide one-window flexible packaging solutions, located at two strategically important locations in the country.

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