The book-building process of International Packaging Films Limited’s (IPAK) Initial Public Offering (IPO) raised Rs 1.77 billion with a subscription rate of 1.73 times, according to the company’s announcement on Thursday.
The IPO attracted significant interest from institutional investors and high-net-worth individuals, setting the final strike price at Rs 25.2 per share, above the initial floor price of Rs 21.Â
International Packaging Films Limited aims to raise Rs 1.77 billion from this IPO, reinforcing its position as the country’s largest flexible packaging film manufacturer.
Brokerage firms largely recommended subscribing to the IPO, leading to a total demand of Rs 1.77 billion against the IPO’s book-building target of Rs 1.47 billion at the floor price.
On May 15-16, the general public will have the opportunity to subscribe to 17,526,364 shares, representing 25 percent of the total offering, at the strike price of Rs 25.2 per share. The funds raised will be used primarily to reduce the company’s debt.
International Packaging Films Limited offers a broad range of packaging solutions, including BOPP, CPP, and BOPET films. It is noted for being the first group in Pakistan to offer one-window flexible packaging solutions from two strategically located facilities in the country.
In 2023, the company reported net sales of Rs 19.9 billion, a gross margin of 27 percent, and profits before tax of Rs 2.9 billion. Its net profit after tax was Rs 1.6 billion, and it achieved a three-year compound annual growth rate in revenue of 41 percent.
