One51’s Canadian shareholders are set to lift their direct stake in the business to around 40pc in a series of moves aimed at clearing the way for a stock market listing in Toronto and Dublin, the Irish Independent understands.

Dublin-based One51’s main business is now a two-thirds stake in North American plastics manufacturer IPL.

One51 said yesterday that it had begun a process to engage with shareholders on a proposed corporate reorganisation of One51 and IPL ahead of an initial public offering (IPO), without providing details.

An IPO is now expected within 12 to 18 months.

“The board is actively advancing this strategy and is today commencing a shareholder engagement process to outline a proposed corporate reorganisation of One51 and in particular the IPL structure that would position the group for an IPO within that timeframe,” the company said.

The Irish Independent understands that the plans, which will require shareholder approval, include swapping a stake in One51 itself for the 33pc of IPL owned by Canadian investors Caisse de Dupot et Placement du Quebec (CDPQ) and Canadian government agency Fonds de Solidarite.

The deal will lift the Canadians’ shareholding in One51 to between 35pc and 40pc of One51, it is understood. As a result, current One51 shareholders will see their stake diluted, but the company will in turn own IPL outright.

IPL now accounts for around 80pc of One51 revenue, a proportion that has increased as the Irish company sold off stakes in other businesses and assets including the Clear Circle waste management business.

The proposals, which will require backing an extraordinary general meeting (EGM) are thought to be in line with a previous plan by One51 management, led by CEO Alan Walsh, that was effectively blocked by then shareholders including businessman Dermot Desmond, who saw it as too generous to the Canadians.

However, earlier this year CDPQ acquired Dermot Desmond’s 25pc One51 stake, in effect clearing the way for the IPO.

The price CDPQ paid for that stake has not been disclosed, but was reportedly around €2.50 a share, a significant premium to the current €1.95 a share trading level.

A formal stock market listing would provide the business a chance to raise cash, and should make it easier for small shareholders to trade in and out of the stock.

Currently, One51’s around 2000 shareholders, many of whom have held stock since it was spun out of IAWS in 2005, can only buy and sell shares on a so-called grey market that is illiquid.

The Irish company, initially emerged as an investment group owning a mix of assets and corporate stakes, but has gradually been streamlined into a plastics manufacturer.  

One51 also announced yesterday that non-executive director Dalton Philips has stepped down from the board, ahead of taking up his new role as chief executive at the DAA, which operates Dublin and Cork airports.

The company said it has appointed advisers to help recruit new directors.