Karachi November 8 2021: Book Building of Pak Agro Packaging Limited (PAPL) conducted from November 03 to November 04, 2021 has been oversubscribed by 1.85 times as per information provided to Pakistan Stock Exchange.
Company has received total participation of PKR 366,453,573 against an issue size of PKR 180,000,000 at the floor price of PKR 22.5 per share. The issue has been oversubscribed by 1.85x. The total investors participated in the Book Building of PAPL were 106 out of which 69 are successful.
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This makes it the first to list on a new bourse for small businesses in Pakistan known as Growth Enterprise Market (GEM).
PAPL intends to raise funds for the purpose of financing its expansion into fish-nets category with associated capital expenditure (including expansion of production facilities) and meeting its working capital requirement. • The Company will be adding 600MT of fish-net manufacturing capacity, on a per annum basis with partial utilization against working capital requirement allowing the firm to enhance production from FY22.
Pak Agro Packaging Ltd (“PAPL”) is engaged in the business of providing textile products for a wide-range of agricultural applications with more than two decades of experience and associated manufacturing acumen.
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Apart from serving farmers’ crop production and shading needs, PAPL also develops items for storage and packaging, protection and enhancement, and fishing/livestock uses. Aside from scaffolding, PAPL products meet several residential purposes.
PAPL has a proven track record of expanding capacity and supplying value added products to Pakistan’s agriculture base. PAPL is a fully integrated (input being High Density Polyethylene Granules, HDPE) supplier of shading, anti-insect, plant support, greenhouse and packing nets.
Post implementation of favorable tax amendments to promote localization of fish nets, PAPL intends to become a market leader in this vertical.
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PAPL’s competitive landscape Industry is informal in nature. Statistics representing the market’s division paradigms are realized via technical estimation of experts. Due a disparate and fractionalized consumer base, PAPL has a highly diversified demand concentration, with no single customer constitutes more than 10% of sales. Some prominent customers include: 1) Berry International, 2) Noor Farmhouse, 3) Bismillah Tarpal, 4) Hafiz Tarpal, 5) Haider Seeds, 6) Hafiz Plastics, 7) Lucky Tarpal, 8) Mehr Farms, and 9) Mian Shadi Farms
Amongst PAPL’s products, domestic manufacturing competitors exist in the Greenhouse Shade market, with KSF Plastics Industries Pvt. Ltd. in Lahore being a notable player. PAPL’s core demand is derived from agricultural practices. A healthy market leadership combined with growth outlook delivers a favorable impact on the prospective future of the Company.
