Plastic business One51 eyes IPO within 12-18 months

The board of Dublin-based plastics business One51 has resurrected plans to float the company within the next 12-18 months, writes Geoff Percival.

While no decision has been made on the location of the IPO, industry sources suggest the Toronto Stock Exchange (TSX) would be the most likely option, given the company’s investor base and presence in Canada. It is believed, however, that would not necessarily rule out a secondary listing on this side of the Atlantic.

One51 entered the North American market through the majority purchase of Canadian packaging company IPL in 2015 and has used that as a springboard into the US market, most recently buying bulk packaging company Macro Plastics, via IPL, in a €135m deal earlier this year.

Canadian fund manager Caisse de dépot et placement du Québec (CDPQ) is now the Dublin group’s largest shareholder, having acquired financier Dermot Desmond’s 25% stake earlier this summer.

One51 pulled initial plans to float early last year — incurring €2.7m in related transaction costs in the process — after opposition from part of its investor base. The resurrected float plan, however, has the full backing of CDPQ. The purchase of Mr Desmond’s stake had been viewed, by some, as a paving of the way for an IPO.

“A stock market listing would provide shareholders with a liquid market for their shares [which currently trade via the so-called ‘grey market’] and would also facilitate the group in raising further equity capital if necessary to support its growth plans into the future,” One51 said yesterday.

Chief executive Alan Walsh said the group’s board has recommenced exploring “a possible IPO” on the back of “the significant progress in the business”.

That statement coincided with the publication of the group’s financial results for the first half of this year. They showed group revenue rising by 32.4%, year-on-year, to €225.8m and earnings — on an EBITDA basis — increasing by just over 31% to €32.4m.

Profit before tax and exceptional items was up by 36.5% on the same period last year at €14.8m.

“We are excited by the prospects for the group following the recent acquisition of Macro, which provides three new locations as well as access to the US west coast. The group is currently investing heavily in expanding its production facilities in both the US and Canada in response to the very strong organic growth in those locations,” Mr Walsh said.

He added that trading in the second half of the year has started “satisfactorily” and “we remain confident of delivering full-year results in line with market forecasts”.