Packaging company, Smurfit Kappa, has announced plans to raise €650m through the placing of new ordinary shares.

The equity raising exercise will be open to new and existing investors.

The company said it was making the move as there is now an opportunity to accelerate its vision by capitalising on the trends in e-commerce and sustainability that are creating significant opportunities for the business.

"Our strong track record of delivery has resulted in the Group being very well-positioned to capitalise on structural growth opportunities," said Group CEO Tony Smurfit.

"From this position of strength we are now focused on investing to strengthen the business and accelerating our vision."

"Net proceeds from the placing, together with internally generated cash flows, will enable us to accelerate investment over the next three years, and enable us to deliver for our customers with enhanced financial flexibility."

He added that accelerating investment will allow the company to increase its competitive advantage, align with the sustainability goals of customers and enhance its operational efficiency.

The group said it has identified €1.2 to €1.4 billion of investment opportunities, which it believes will strengthen the business for the long-term.

It added that certain directors and members of the senior management team intend to participate in the placing to the tune of €1.3 million.

The new shares will not be eligible for the recently declared interim dividend of 27.9 cent per share that is payable on December 11.

Credit Suisse Securities, Davy and BNP Paribas are acting as joint global co-ordinators and joint bookrunners for the placing.