The Curran Account: Mincon creating real buzz with IPO plans
THE Irish Stock Exchange may not have landed a Twitter IPO, but the announcement by Shannon engineering firm Mincon that it plans to float later this month is very welcome news.
It is the first Irish IPO in Dublin in a long time. It is also a firm that makes things – namely hammers and drill bits, including the one used in the dramatic rescue of trapped miners in Chile a few years ago. It's a real business with real profits (€13.2m), real cash (€14m) and no debt.
Turnover and profits have doubled since 2010 and the company wants to use the €50m raised from the IPO for acquisitions. Shareholders will get a dividend of €15m ahead of the IPO.
Founded in 1977, it is a good Irish success story.
Will it be a good stock? That depends on the valuation and how good chief executive Kevin Barry is at identifying acquisition targets.
He said last week he had some lined up, but buying well can sometimes be a lot trickier than building well. The acquisitions trail can pay off big time, but it can also be fraught with challenges.
The target acquisitions are aimed at accessing new products and markets Mincon, as well as protecting current strong margins.
Despite being set up 36 years ago, it does look like a company in a hurry.