October, 6, 2021
Sri Lanka’s market leader in corrugated cartons, Ex-Pack Corrugated Cartons Limited announces the launch of its Initial Public Offering (IPO), which will close on the 22nd of October 2021. The company’s prospectus has now been officially published on the website of the Colombo Stock Exchange. Ex-Pack is a wholly-owned subsidiary of Aberdeen Holdings, previously known as Expolanka Investments, one of Sri Lanka’s most respected diversified family businesses for over 30 years.
Ex-Pack Corrugated Cartons Limited, has spent over two decades innovating and driving change in the packaging industry, while acquiring an extensive clientele, comprising of major corporates and brands, in over 8 countries. Ex-Pack has built a solid reputation in the B2B space and is recognized both at home and abroad. In Sri Lanka, Ex-Pack leads in terms of both production and exports; which accounts for 52% of revenue being generated in US Dollars. Guided by a strong, diverse leadership team and driven by a commitment to innovation and customer satisfaction, the Company has emerged as a full-service corrugated cartons solutions provider, currently producing 1 out of every 5 cartons in Sri Lanka.
Announcing the IPO, Mr. Sattar Kassim - Chairman at Ex-Pack said, “It is with great pleasure that we welcome the public to consider joining us on our journey towards emerging as the most preferred corrugated cartons supplier in Sri Lanka. At present, our 295-strong team produces 2650 metric tonnes of corrugated cartons per month at our 203,000 square-foot facility. We have designed and implemented a comprehensive medium to long term growth strategy, which includes a new, ultramodern 3-billion-rupee production plant, for which we have already secured the majority of funds internally and through debt financing. This new plant will almost double our capacity to 4,000 metric tonnes by 2025. The approximately 700 million rupees we intend to raise through our IPO, will be channelled towards this effort, giving us maximum potential for growth. I take this opportunity, in advance, to welcome our new shareholders and thank all investors who subscribed, for placing their faith in us.”
Managed by joint investment bankers, Capital Alliance Limited and Asia Securities Ltd, Ex-Pack Corrugated Cartons Limited will offer 83,333,333 ordinary voting shares at a price of LKR 8.40 per share through its IPO, resulting in a projected market capitalization of LKR 2.8 billion. This translates into an estimated forward PER of 7.7x for FY22 and implied TTM PER (as at August 2021) of 8.9x.
Ex-Pack’s product portfolio includes regular slotted cartons, die-cut cartons, laminated cartons and a host of specialized products developed using recycled material. The Company has designed and engineered many innovative, benchmark-level products, including lightweight cartons for fresh fish, and garment on hanger cartons, for high-quality apparel to be shipped upright, hung on clothes hangers. Ex-Pack also worked with the Department of Elections to transform ballot boxes in Sri Lanka, crafting them out of corrugated cartons for the first time ever, enhancing security and mobility, during the 2020 General Election. The Company serves top corporate customers and brands, worldwide, across a range of industries including FMCG, consumer durables, apparel, tea and fisheries.