Mincon to raise €50m in Dublin and London flotation

Shannon-based engineering services firm Mincon is due to float in both Dublin and London, later this month, in a €50m fundraising move aimed at aggressively growing the firm through acquisition inside the next two years.

Mincon to raise €50m in Dublin and London flotation

The company — which specialises in the making of drilling equipment for mining and exploration firms — will take a dual share listing on the ESM market in Dublin and London’s AIM exchange on Nov 22.

Mincon’s stated aim is to double its business by the end of 2015 — its revenues increased by 53%, last year, to €63.1m — through a mix of organic and acquisition-led growth.

Regarding the latter avenue, the company — which started life in the late 1970s and whose drilling equipment was used in the rescue of the Chilean miners three years ago — is hoping to complete “two-to-three” acquisitions, within the rock drilling consumables space, over the next 18 months.

The company is open to spending between €10m and €30m on targets and said that there exists a strong pipeline of acquisition opportunities, with it having already started some preliminary discussions.

Mincon’s chief executive, Kevin Barry, added that the company hopes to have at least one purchase concluded by next June. While Mincon sees big potential in areas like South America and Africa (where it already has a small sales presence) its immediate expansion focus will be on Europe and North America.

Mincon’s expansion will be tailored towards entering new markets, growing its product portfolio and getting a good return on investment.

Management is trying to position the firm as a one-stop-shop in the area of rock-drilling consumables. The firm will also be in a net cash/debt free position going into the IPO and hopes to establish a progressive dividend policy, with shareholders due their first payout in the third quarter of next year. None of the existing management team will dilute their shareholdings and the board will be strengthened by former ESB chief, Padraig McManus, and Prime Active Capital’s Peter Lynch joining as non-executive directors.

Asked why the company didn’t just opt for a single listing in London, Mr Barry said that as well as wanting to remain loyal to its Irish roots, the company wants its shares to appeal to eurozone funds as well as just sterling-linked ones.

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