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Ex-Pack to raise Rs. 700 mn through IPO

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Ex-Pack Corrugated Cartons Limited is looking to raise capital from the public to the tune of Rs. 700 million by offering a 25% stake in the company or 83,333,333 ordinary voting shares at a price of Rs. 8.40 per share through an IPO, resulting in a projected market capitalization of Rs. 2.8 billion.

The funds raised through the IPO are expected to contribute towards the commissioning of a new LKR 2.98 billion state-of-the-art production facility, which is being largely funded through internally generated funds and debt funding.

Chairman, Sattar Kassim said, “Ex-Pack has built a solid reputation in the B2B space and is a well-recognized name in the market for corrugated cartons in Sri Lanka and abroad. We have grown to become the market leader in Sri Lanka, not just in terms of production but also in terms of exports.”

Ex-Pack serves top corporate customers and brands, worldwide, across a range of industries including FMCG, consumer durables, apparel, tea and fisheries.

“Our team of 295 employees produces upwards of 2,650MT of corrugated cartons each month at our 203,000 square-foot production facility, while 52% of our group revenue comes from USD earnings in export markets.

Through our IPO, we intend to raise capital to help partially fund the expansion of our manufacturing capacity, through the commissioning of a new plant, bringing our monthly capacity to 4,000MT by 2025.”

Managing Director, Zulficar Ghouse added, “Having transformed from a traditional manufacturer into a full-service corrugated cartons supplier, Ex-Pack produces 1 out of every 5 cartons produced in Sri Lanka and is the only Sri Lankan manufacturer with a strong international presence. These factors make a compelling case for potential investors who intend to invest in Ex-Pack.”

Ex-Pack’s product portfolio includes regular slotted cartons, die-cut cartons, laminated cartons and a host of specialized products. These specialized products include unique and innovative solutions such as wardrobe cartons (with clothes hangers) made for the storage and transport of apparel items and light-weight fish containers.

Ex-Pack also designed, produced and supplied 12,350 technically complex ballot boxes to Sri Lanka’s Election Commission for the 2020 General Election. The Company’s international presence extends to 8 key markets including the Maldives, Qatar, India, the USA, Australia, Madagascar, the Seychelles and Reunion Island.

Source DailyNews
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