Ex-Pack amends IPO prospectus to end dispute with LCCMA

• IPO opens today with Ex-Pack seeking to raise Rs.700mn offering 83.3mn shares 

Ex-Pack Corrugated Cartons (Pvt) Ltd. has decided to amend its claim on “market leadership” from its IPO prospectus to end the dispute fueled by Lanka Corrugated Carton Manufacturers Association (LCCMA) disputing the firm’s market leadership, as its Rs.700 million IPO opens today.

The company offers 83.3 million shares or 25 percent stake at a price of Rs.8.40 per share.

“While we stand by our initial estimates and the basis through which these were arrived, we acknowledge that there is now an unverified competing claim for market leadership.  With this in mind, in the interest of time and the broader interest of the commitments we have made to our current and future public shareholders and other stakeholders, we do not envisage this to be a matter of any significance and hence, are happy to be considered as ‘One’ of the largest corrugators in the market,” Ex-Pack, Managing Director, Zulficar Ghouse announced in a market disclosure. 

Accordingly, the company will take measures to replace   “The market leaders in the corrugated Cartons industry” in the prospectus and the research report to “One of the market leaders in the corrugated cartons industry”, it stated in an addendum submitted to the CSE. LCCM in letters dated 16th and 17th October requested the Colombo Stock Exchange (CSE) to delay the IPO of Ex-Pack until the company rectifies the alleged inaccurate information regarding its market share provided in the IPO prospectus.  However, Ex-Pack denied these allegations saying that such were purely fuelled by personal issues between Ex-Pack and some of its competitors.  Ghouse reiterated that the disclosure and the addendumhave no impact on the company’s forecasted financials, valuation, and the IPO price.

“The reference to market leadership and approximate market share only demonstrates the stature and the extent of our presence in the market and has relatively little or no bearing on the Public Issue of our shares,” he stated.