Ex-Pack IPO oversubscribed 11 times

Ex-Pack Corrugated Cartons Ltd’s Rs. 700 million IPO, drew 6,000+ applicants seeking to subscribe, resulting in an 11 + oversubscription.

This is the highest rate of oversubscription witnessed by any recent IPO, making it the highest subscribed IPO for 2021. The IPO, which opened on October 22, was oversubscribed in a matter of minutes and, thus, closed at 4.30pm the same day. There was active interest from a range of investors, both individuals and institutions, with Ex-Pack receiving more than 6000 applications worth over Rs. 8 billion. Heavy retail activity was also noted, the company said in a media release this week.

Zulficar Ghouse, Managing Director at Ex-Pack, said, “We are very pleased to say that the interest our IPO received surpassed expectations at every level. I take this opportunity to thank all those who placed their confidence in us and subscribed to our IPO. We look forward to having you onboard our journey and remain resolutely committed to delivering exceptional value to our investors, customers, people, communities and other stakeholders. The resounding success of our IPO is a testament to the underlying value and fundamentals of the company. It also demonstrates that investors have faith in our business, supported by our fundamentals.”

Commenting on the exceptional outcome of the IPO, Rizny Faisal, Senior Vice President and Head of ECM and M&A at CAL, joint manager of the issue, said, “We couldn’t be more pleased at the outcome of this issue and take this opportunity to congratulate Ex-Pack on presenting such a good case for investors. Given the unprecedented levels of interest in this issue, we have successfully guided the company at every step of the way.”

Sujendra Mather, Head of Investment Banking at Asia Securities, further added, “We are proud to be Joint Managers to the Issue and would like to congratulate Ex-Pack for delivering one of the most sought-after IPOs of the year.”

Funds raised by the IPO will go towards a 3-billion-rupee ultramodern production facility, which is expected to raise monthly volumes from 2,650 metric tons currently, to 4,000 metric tons by 2025.