International Packaging Films (IPAK) has raised equity financing worth Rs1.77 billion at a two-day auction of its stakes, selling 70.1 million shares at Rs25.2 per share at the Pakistan Stock Exchange (PSX).
The company sold the stocks at a price 20% higher compared to the pre-IPO (initial public offering) announced minimum (floor) price of Rs21 per share, with the potential to increase by 40% to Rs29.40 per share during the auction. The IPO was oversubscribed by 1.73 times, with financial institutions and high-net-worth individual investors submitting bids for Rs2.54 billion against the issue size of Rs1.47 billion, according to the lead manager and joint book runner for the issue, Arif Habib Limited (AHL), on Thursday.
AHL, CEO, Shahid Ali Habib noted a significant participation of offshore investors, a first for any IPO in Pakistan, alongside local investors including corporates, Roshan Digital Accounts (RDAs), mutual funds, financial institutions, exchange brokers, and high-net-worth individuals.
Initially, the company sold 75% of the 70.1 million stocks (equivalent to 10.1% post-IPO paid-up capital) to auction participants and plans to offer the remaining 25% at the strike price of Rs25.2 per share to retail investors later this month. Any unsubscribed retail portion will be allotted to successful bidders (institutional and individual investors) on a pro-rata basis.
IPAK is set to be listed on the PSX and make its shares available for public trade from May 31, 2024. This marks the third listing at PSX so far in 2024, compared to only one IPO held at the bourse in 2023.
Previously, the company announced plans to utilise the IPO proceeds for early repayment of long-term loans acquired to fund expansion projects, including setting up manufacturing facilities for BOPP and BOPET films.
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, boasting a total nameplate capacity of over 150,000 tonnes per annum spread across 50 acres.
TPL REIT IPO
Last week, TPL Real Estate Investment Trust (REIT) Fund-I raised Rs588.79 million in equity financing by selling 33.47 million units at a fixed price of Rs17.59 per unit at PSX. The IPO was oversubscribed by 1.46 times, with bids received for 33.47 million units against the base offer of 22.94 million units (1.25% units).
The company utilised the green shoe option, selling an additional 22.94 million units at the IPO.
Topline Research noted that TPL REIT Management Company Limited, a 100% subsidiary of TPL Properties, launched Pakistan’s first and largest hybrid Shariah-compliant REIT, TPL REIT Fund I.
The REIT Fund-I has invested in three projects; Mangrove, One Hoshang, and Technology Park. Prior to the IPO, unit holders of the REIT scheme included TPL Properties and eight commercial banks, with an initial REIT size of Rs18.35 billion, with 61% held by anchor investors and 39% by TPL Properties.
In late March 2024, Secure Logistics Group (SLG) successfully raised Rs600 million by selling 50 million shares at Rs12 per share.
Published in The Express Tribune, May 10th, 2024.
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