Demonstrating renewed investor confidence in Sri Lanka’s capital market, HNB Investment Bank (HNBIB) has expressed strong optimism over the Initial Public Offering (IPO) of JF Packaging Limited, describing it as a “landmark and timely offering” poised to deliver significant long-term value.
Addressing the Investor Forum held at Cinnamon Life in Colombo recdently, Dr. Yavin Jayasekera, Chief Strategic Officer of HNB Investment Bank (Pvt) Ltd., said that market sentiment toward the IPO had been “overwhelmingly positive,” reflecting the appetite among institutional, high-net-worth and retail investors for well-structured equity offerings.
“The response we have received so far is nothing short of phenomenal. The online applications opened just a week ago, and by this afternoon we had already exceeded a thousand applications. This shows the depth of demand and the market’s hunger for opportunities like this, Dr. Jayasekera said.
He noted that the issue, which seeks to raise Rs. 600 million through the sale of 51.7 million new shares at Rs. 11.60 per share, represents “not merely a capital raise, but the beginning of an exponential growth phase” for JF Packaging.
“The issue is optimally priced and right-sized to meet the company’s objectives. From day one, investors will see tangible benefits to the company’s bottom line. The risk is not in investing in this IPO — the real risk is in not investing, given the momentum we’re seeing, he added.
Jayasekera highlighted that this was only the second IPO on the Colombo Stock Exchange in 2025, adding that lower interest rates, improving macroeconomic stability and positive market sentiment had created an ideal window for new listings.
“We are proud to be associated with JF Packaging — a resilient, future-ready enterprise. Their leadership, financial discipline and strategic clarity give us supreme confidence that this IPO will not just be successful, but phenomenal, he said.
Taking the discussion forward, Ms. Shivanthi Sugathadasa, Senior Assistant Vice President – Corporate Finance at HNB Investment Bank, provided an analytical overview of the IPO’s highlights, financial outlook, and valuation metrics.
She said the offering represents a 30.05% stake in the company, valuing JF Packaging at approximately Rs. 2 billion post-listing.
“The IPO price offers a potential 36.6% upside to investors based on our valuation models. The proceeds will primarily be used to settle specific term and import loans, thereby deleveraging the balance sheet and positioning the company for the next phase of growth, Sugathadasa explained.
Highlighting the company’s credentials, she described JF Packaging Limited as an “integrated one-stop packaging solutions provider” catering to both food and non-food sectors through its flexible packaging, PET products, plastic accessories, adhesive tapes and paper-based packaging divisions.
The JF Packaging IPO opens on October 30, 2025, and is managed and advised by HNB Investment Bank (Pvt) Ltd.
By Ifham Nizam 
from The Island https://ift.tt/mOvfsui
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