Corrugated carton industry leader Ex-Pack announces Rs. 700 m IPO

• Move to partially fund expansion of manufacturing capacity through new plant 

Chairman Sattar Kassim

MD Zulficar Ghouse

Sri Lanka’s number one corrugated carton manufacturer Ex-Pack yesterday announce the unpacking of a new beginning, through its impending Initial Public Offering (IPO) and listing on the Colombo Stock Exchange. 

Ex-Pack Corrugated Cartons Ltd. is a wholly-owned subsidiary of Aberdeen Holdings. Formerly known as Expolanka Investments Ltd., Aberdeen Holdings is one of Sri Lanka’s most reputed and respected diversified family businesses with over 30 years of service across a myriad of industries including pharmaceuticals, commodities, aviation, transport, energy, farming, packaging and recycling and supply chain and logistics. 

Chairman Sattar Kassim said: “Ex-Pack has built a solid reputation in the B2B space and is a well-recognised name in the market for corrugated cartons in Sri Lanka and abroad. 

Our reputation for quality and reliability is unparalleled in the industry and 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 produce 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.” 

Ex-Pack Corrugated Cartons 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 capitalisation of Rs. 2.8 billion. The funds raised through the IPO are expected to contribute towards the commissioning of a new Rs. 2.98 billion state-of-the-art production facility, which is being largely funded through internally generated funds and debt funding.

Managing Director Zulficar Ghouse said: “Through its strong, diverse leadership team and parent company backing, Ex-Pack has set itself apart from others in Sri Lanka’s corrugated carton industry. Having transformed from a traditional manufacturer into a full-service corrugated cartons supplier, Ex-Pack produces one out of every five 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.”

Sustainability and responsible business are also intrinsically woven into the fabric of Ex-Pack, demonstrated by its specialised and wholly-owned subsidiary, Neptune Papers; a pioneer in recycling and paper services, responsibly contributing towards approximately 30% of Ex-Pack’s group top-line. The company has also developed a reputation as a responsible corporate citizen and an employer focused on improving its communities and safeguarding the environment. 

Ex-Pack’s product portfolio includes regular slotted cartons, die-cut cartons, laminated cartons and a host of specialised products that are developed using recycled materials and designed specifically to meet customer needs. These specialised 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 proudly 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 eight key markets including the Maldives, Qatar, India, the US, Australia, Madagascar, the Seychelles and Reunion Island.