Thursday 17 January 2019

IPL Plastics shares fall in first trading

IPL Plastics chief executive Alan Walsh
IPL Plastics chief executive Alan Walsh

Frederic Tomesco and Gavin McLoughlin

Shares in IPL Plastics dipped in their first hours of trading yesterday after the company completed its Canadian IPO.

Shares were down more than 1.3pc after the first three and a half hours, with IPL having raised CAD$178.2m (€116m) as part of the deal.

The company plans to use acquisitions to expand its manufacturing footprint into new countries, chief executive Alan Walsh said in Canada yesterday.

Europe and North America are the company's two main areas of focus for future expansion, given that IPL has no manufacturing presence in continental Europe, Mr Walsh said.

"One of the reasons for doing an IPO was to give us a currency that we could use to do other things if the opportunities arise," Mr Walsh said.

"If it's a smaller deal, we can self-finance with bank facilities. If there is a bigger opportunity out there, we will have a currency. We wouldn't be inhibited from pursuing anything that we're looking at." Asked whether transactions could materialise within months or years, he said: "Somewhere in between." He declined to provide figures on the size of the next deal.

Should a large acquisition opportunity present itself, Mr Walsh said IPL could turn to the Caisse de Depot et Placement, one of its largest shareholders, for financing support. The Caisse, Canada's second largest pension-fund manager, has a history of backing Quebec-based companies that expand abroad.

The Caisse "came in with us in 2015, and we've had a successful relationship with them", Mr Walsh said. The shares listed at CAD$13.50 - at the lower end of the company's price range. Recent falls in the value of peer companies RPC and Berry have weighed on the IPO. (Bloomberg)

Irish Independent

Also in Business