Pakistan Aluminium Beverage Cans Limited (PABC) has made headlines by successfully launching its Initial Public Offering (IPO), attracting strong investor interest and solidifying its position as the country’s only aluminium beverage can manufacturer. Here’s everything you need to know about this major market event.
About PABC – Pakistan’s First Aluminium Can Maker
Established in 2017, PABC operates from the Faisalabad Special Economic Zone (SEZ). It enjoys a 10-year tax holiday, making its financial model highly attractive. The company caters to major clients like PepsiCo, Coca-Cola, and other regional beverage giants, replacing imported cans with locally produced options.
- Location Advantage: Close proximity to clients lowers logistics costs.
- Market Gap Filled: Previously, cans were mostly imported; now, demand is met locally.
- Production Capacity (2025): 950 million cans annually.
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PABC IPO – Key Details
| IPO Feature | Details |
|---|---|
| IPO Dates | June 22–23 (Book-building Phase) |
| Total Shares Offered | 93.88 million (26% of total paid-up capital) |
| Price Range | PKR 35 (floor) – PKR 49 (ceiling) |
| Final Price | PKR 49 per share |
| Total Raised | ~PKR 4.6 billion (USD 29 million approx.) |
| Oversubscription | 2.5x to 3.3x (institutional investors) |
This IPO ranks as Pakistan’s second-largest private sector IPO, following Interloop in 2019.
Use of Proceeds & Strategic Partnerships
While the IPO was an offer-for-sale by Ashmore Mauritius (a private equity firm), it marked the entry of Liberty Group and Soorty Enterprises as new strategic shareholders through a prior private placement.
- No new equity issued — existing shareholder exit.
- Long-Term Financing Facility (SBP): Utilized for plant expansion and modernization.
Financial Performance
PABC’s strong fundamentals and future outlook played a key role in the IPO’s success.
| Financial Metric | 2020 | 2022 |
|---|---|---|
| Revenue | PKR 3.2 Billion | PKR 6.9 Billion |
| Net Profit | PKR 610.7 Million | PKR 2.71 Billion |
| Profit Growth (YoY) | +314% (2020) | +72% (2022) |
- Earnings Growth Forecast: 43% compound growth over 5 years.
- Analyst Valuation Target: PKR 80/share (PEG ratio ~0.5 at IPO price).
Export Potential & ESG Advantage
- Current Export Markets: Afghanistan (~35% of total sales)
- Expansion Plans: Deals in the pipeline with Tajikistan, USA, and Central Asia
- Sustainability: Aluminium cans are 100% recyclable, offering a green packaging solution aligned with global ESG standards.
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Risks to Watch
Despite its strong position, investors should monitor:
- End of Tax Incentives: Margins may shrink post-SEZ benefits.
- Raw Material Volatility: Aluminium coil prices impact profitability.
- Market Competition: Possible new entrants as demand grows.
- Macroeconomic Instability: Currency, inflation, and political risks in Pakistan.
Final Thoughts: Should You Invest?
PABC offers a rare combination of monopoly status, export capability, and ESG alignment in a growing packaging market. Its impressive IPO performance and strong financials make it a solid growth stock, especially for long-term investors eyeing emerging market leaders.
However, one must account for policy changes and commodity price risks before investing. Stay tuned with Bloom Pakistan
Quick Snapshot
| Category | Details |
|---|---|
| Sector | Aluminium Packaging (FMCG-linked) |
| Clients | Pepsi, Coca-Cola, local beverage firms |
| Status | Only aluminium can manufacturer in PK |
| Growth Outlook | High (capacity, exports, beverage demand) |
| ESG Compliance | High (100% recyclable product) |
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