International Packaging Films Limited intends to raise PKR 1.47 billion by issuing 70.1 million shares to the public, representing 10.01% of its post-IPO paid-up capital at a Floor Price of PKR 21.00/share.
The Book-Building Dates are 8th and 9th May. The Company will utilize the proceeds raised from the IPO to early repay a long-term loan acquired to fund expansion projects, i.e., setting up manufacturing facilities for the BOPP and BOPET films.
The group is the largest flexible film manufacturer and collectively offers a diverse portfolio of packaging solutions. It produces BOPP, CPP, and BOPET films, making it the first-ever group in Pakistan to provide one-window flexible packaging solutions located at three strategically important locations in the country.
IPAK, along with its subsidiaries – Cast Packaging Films (CPAK), Petpak Films (PETPAK), and Global Packaging Films (GPAK) – collectively forms the largest manufacturing group of flexible packaging films in Pakistan, with a total nameplate capacity of over 150,000 tons per annum, spread over an area of 50 acres.
The Issue is being made through a 100% Book-Building process, whereby the bidders place bids for 100% of the Issue Size. However, the successful bidders shall be allocated only 75% of the shares, and the remaining 25% shall be offered to retail investors. If the retail portion remains unsubscribed, the unsubscribed shares will be allotted to the successful bidders pro-rata.
International Packaging Films Limited recorded net sales of PKR 19.9 billion in 2023. Its gross margin for the financial year 2023 remained at 27%, and its profit before tax for the year 2023 remained at 2.9 billion. Its net profit after tax was 1.6 billion. The company’s 3-year revenue CGAR remained at 41%.
Apart from catering to local demand and substituting imported products, the company also exports its products to North America, Europe, Africa, the Far East, and Middle Eastern countries such as Saudi Arabia and Oman, earning foreign exchange for the country.
IPAK Group CEO Naveed Godil said his company is expected to earn 15 to 20 million dollars of foreign exchange through exports in 2024/25.
Shahid Ali Habib, chief executive of Arif Habib Ltd, said Investors have an exciting opportunity to invest in International Packaging Films Limited, Pakistan’s largest manufacturer of flexible packaging films (BOPP, CPP, and BOPET films). With a 3yr revenue CAGR of 41% and enticing forward PE and PB multiples of 4.2x and 0.8x, respectively, International Packaging Films Limited offers a unique opportunity to invest in a company that is a company that offers a 3yr revenue CAGR of 41% and a forward PE and PB multiple of 4.2x and 0.8x, respectively.
Arif Habib Limited (“AHL”) and AKD Securities Limited (“AKDSL”) have been mandated by International Packaging Films Limited (IPAK) to act as a Mandated Lead Manager and Joint Lead Manager, respectively, for raising funds through an Initial Public Offering(“IPO”).
Established in 2015, International Packaging Films Limited (IPAK) was initiated as a green field project to manufacture Biaxially Oriented Polypropylene (“BOPP”) films through its state-of-the-art 8700mm Co-Extruded BOPP production line, which was acquired from Bruckner Maschinenbau (Germany).