JF Packaging IPO Opens Today with Active Interest Expected

The much-awaited Initial Public Offering (IPO) of Ordinary Voting Shares of JF Packaging Limited opens today. As one of Sri Lanka’s leading and multi-award-winning flexible packaging solutions providers serving both local and international clients with a strong focus on sustainability, innovation, and operational excellence, the Issue is expected to draw active interest from a broad spectrum of local and global, individual and institutional investors.

A total of 51,724,144 Ordinary Voting Shares of JF Packaging Limited will be on offer to the public today at an Issue Price of LKR 11.60 per share, with the Company seeking to raise LKR 600 million through public investment, and a listing on the Main Board of the Colombo Stock Exchange.

In its Prospectus, the Company has outlined its intended objectives for the capital it hopes to raise today. Accordingly, JF Packaging Limited plans to allocate LKR 439,464,493 towards the settlement of selected term loans obtained from Bank of Ceylon, Nations Trust Bank PLC, and Siyapatha Finance PLC, and LKR 160,535,577 towards the partial settlement of outstanding revolving import loans from the Bank of Ceylon. These repayments are expected to significantly strengthen the Company’s balance sheet, reduce finance costs, and improve cash flows to support future growth.

Discussing the IPO, David K. P., Managing Director of JF Packaging Limited, said, “We have clearly communicated the exceptional value proposition of this Issue to the investor community, and the feedback has been extremely positive. We therefore anticipate active interest across the board and look forward to a successful, oversubscribed issue.”

Commenting on the value proposition presented by the Issue, Mr. Yaveen Jayasekara – Chief Strategy Officer at HNB Investment Bank, the Financial Advisor and Manager to the Issue, said, “When you consider the fundamentals of JF Packaging, the IPO presents a compelling opportunity with a 26.8% discount to the average fair value based on multiple valuation methodologies. Combined with the Company’s proven track record, industry leadership, and commitment to sustainable innovation, we see strong potential for value creation in the years ahead.”

JF Packaging Limited is a market leader in high-quality flexible packaging, catering to prestigious local and global brands such as Nestlé, Unilever, Prima, Keells, Cargills, Maliban, and Ceylon Biscuits. The Company’s diverse product portfolio includes shrink sleeves, alu lids, pouches and bags, high barrier laminates, and co-extruded films manufactured to stringent quality standards at its state-of-the-art facility in Kotugoda, Sri Lanka.

The Company is also awarded for its sustainability initiatives, including the introduction of bio-based plastics, compostable packaging, and post-consumer recycled (PCR) laminates. These innovations not only reduce environmental impact but also align with the growing global demand for eco-friendly packaging solutions.

Overall, the JF Packaging IPO presents investors with a high-value opportunity to gain exposure to a resilient, innovation-driven industry with robust growth prospects in both domestic and export markets.