International Packaging Films Limited (IPAK), a pioneer of the five-layer BOPP film in the packaging industry of Pakistan, has applied for listing on Pakistan Stock Exchange (PSX).
As per the notice issued by PSX, the Company shall be issuing 63,500,000 Ordinary Shares (i.e., 14.99% of the total post-IPO paid up capital of International Packaging Films Limited) of face value of Rs10/- each.
The entire issue will be offered through 75% Book Building Method and 25% Retail/ General Public Portion.
The Book Building portion of the Issue comprises 47,625,000 ordinary shares (75% of the total issue) at a Floor Price of Rs34.00 (including premium of Rs24.00 per share) with a maximum price band of up to 40%.
While the General Public portion of the Issue comprises of 15,875,000 Ordinary Shares (25% of the total issue) at the Strike Price. The General Public portion will be fully underwritten. The Underwriters will be appointed upon determination of strike price and subsequently published in the supplement to the Prospectus, the notice said.
As per the notice, AKD Securities and Intermarket Securities have been appointed as joint Lead Managers and Book Runners by the issuer for this Isssue. Bank Al Habib (BAHL), Meezan Bank Limited (MEBL) and Habib Metropolitan Bank Limited (HMB) are the banks to the Book Building portion of the Issue.
While, Allied Bank Limited, Askari Bank Limited, Bank AL Habib Limited, Dubai Islamic Bank Limited, Faysal Bank Limited, Habib Bank Limited, Habib Metropolitan Bank Limited, MCB Bank Limited, Meezan Bank Limited, Silk Bank Limited, and United Bank Limited are the bankers for the Retail portion of the Issue.
To highlight, International Packaging Films Limited (“IPAK”) was founded in 2015 as a greenfield project to manufacture Biaxially Oriented Polypropylene (“BOPP”) films. The Company was initially incorporated on October 02, 2015 as a private limited company under the Companies Ordinance 1984 (now repealed) and was later converted into a public limited company on June 11, 2021 under the Companies Act, 2017. The Company’s manufacturing facility is situated at IPAK Plant, Manga Chowk, Roohinala, Raiwind By-Pass Road, Lahore, spanning over an area of around 6.9 Acres.
The Company is a pioneer of the five-layer BOPP film in the packaging industry of Pakistan. With its complete state-of-the-art 8700mm Co-Extruded BOPP production line acquired from one of the world’s most renowned and largest manufacturer, Bruckner Maschinenbau (Germany), it harbors an operational name-plate capacity of 41,360 tons per annum capable of producing BOPP Films of various grades and thickness ranging between 10 to 60 microns.
As part of the expansion plan, IPAK ventured into the manufacturing and selling of CPP Films through a wholly-owned subsidiary, Cast Packaging Films (Private) Limited which was incorporated in Karachi, Pakistan as a private limited company on April 1, 2020. CPF commenced its operations on April 01, 2021 by setting up the latest and most sophisticated five- layer Co-Extruded CPP production line acquired from one of the world’s most renowned and largest manufacturers, SML Maschinengesellschaft mbH (Austria) having an annual nameplate capacity of 9,900 tons per annum.
The principal purpose of the Issue is to invest the entire amount raised at the Floor Price as equity investments in Cast Packaging Films (Private) Limited (CPF), Global Packaging Films (Private) Limited (GPF) and Petpak Films (Private) Limited (PPF). CPF and GPF are wholly owned subsidiaries of IPAK whereas PPF is a 52% owned subsidiary of the Company. Any excess proceeds raised over the Floor Price would be utilized either to fund the internal working capital requirement of IPAK or to make equity investments in CPF, GPF and PPF, as deemed appropriate by the BOD of IPAK.
The reason for not opting to list CPF, GPF or PPF instead of IPAK is that the management of the Company perceives that CPF has recently commenced operations whereas GPF and PPF, being greenfield projects have not yet commenced its operations and might not be able to encash its potential as of now; hence, routing the proceeds