IPL Plas­tics’ in­vestors clear the way for IPO next month

Irish Independent - - Business - Gretchen Frie­mann

A NUM­BER of the 2,000 Ir­ish share­hold­ers in IPL Plas­tics, formerly known as One51, in­tend to re­main on the reg­is­ter until di­vided re­pay­ments restart, un­der­scor­ing the depth of loy­alty to the resur­gent com­pany as it bears down on a ini­tial pub­lic of­fer­ing in Toronto.

Ac­cord­ing to bank­ing sourc- es, some lo­cal in­vestors are in­quir­ing about share­holder pay­ments even though the pro­vi­sional prospec­tus states the com­pany does not an­tic­i­pate pay­ing cash div­i­dends on its se­cu­ri­ties “in the fore­see­able fu­ture”.

IPL Plas­tics yes­ter­day won over­whelm­ing sup­port from in­vestors to ex­e­cute a cor­po­rate over­haul aimed at fa­cil­i­tat­ing next month’s IPO in a move that de­liv­ers on a pledge first made a decade ago, when Philip Lynch was at the helm.

Yes­ter­day, at the com­pany’s egm and agm in Dublin, chief ex­ec­u­tive Alan Walsh stressed that the Ir­ish share­holder base, which is dom­i­nated by co-ops who have clung on since the IAWS days, re­mains en­thu­si­as­tic.

Mr Walsh said few in­vestors are dis­play­ing in­ter­est in a share buy­back that of­fers an op­por­tu­nity to leap out at the same val­u­a­tion as the IPO price. “No one’s in a rush to the exit door,” he said.

The Cana­dian list­ing will wa­ter down in­vestors’s stakes to less than 50pc. Cur­rently the largest stake­hold­ers are Fonds de Sol­i­darite FTQ (FSTQ), a Cana­dian gov­ern­ment agency which backs in­vest­ment in Que­bec and Caisse de De­pot et Place­ment du Que­bec (CDPQ) a long-term in­sti­tu­tional in­vestor that man­ages funds for the Cana­dian pub­lic sec­tor.

While lo­cal in­vestors have en­dured a tur­bu­lent ride as the com­pany bal­looned into an over-sized con­glom­er­ate and then thinned out again to be­come a plas­tics man­u­fac­turer, its for­tunes fi­nally appear to be on the rise.

While the com­pany chalked up a 46pc in­crease in earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion (ebitda) last year to €70.9m, that fig­ure is pro­jected to rise to €72.7m-€79.4m by 2021, ac­cord­ing to the pro­jec­tions in­cluded the prospec­tus.

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