PACKAGING printer Starlite Holdings, which is to raise $60 million through a public offer, intends to more than double its production capacity by the end of next year. Starlite president K.Y. Lam said yesterday that a net profit of $23 million had been recorded on a turnover of $110 million for the six months to last September. Production capacity would be increased by 25 to 30 per cent this year, and then by another 55 per cent by the time the new printing works in Shenzhen was in full operation, scheduled for the second quarter of 1994. Lippo Asia and Standard Chartered Asia are the co-sponsors and underwriters of the new issue, which will go to the market within a week. The price of the issue, representing about 25 per cent of the enlarged capital, is expected to be six or seven times the 1992-93 prospective earnings per share. The packaging products made by the company are mainly for toys, personal goods, food, electronic appliances and gifts. About 10 major clients - which include Hallmark, Sega and Polaroid - account for about 54 per cent of Starlite's turnover. Mr Lam said that volatility of earnings because of the few major clients should not be a concern as no single client accounted for more than 11 per cent of the turnover. The company planned to diversify into the European and mainland markets. More representative offices would be set up in mainland cities to increase the number of clients. Starlite has bought a 270,000 square feet site next to its old factory in Shenzhen. When the plant is completed, it will be one of the most advanced printing houses in China. Mr Lam said more than $40 million would be spent on construction and equipment. Another $110 million would be spent on second-phase development, subject to demand. Starlite would invest about $30 million raised through the new issue in building and equipping the Shenzhen plant. The other $30 million would be for working capital and loan repayment.